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Operational Controls in Operational Risk Management

Operational Controls in Operational Risk Management

$351.00
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Includes a practical, ready-to-use toolkit containing implementation templates, worksheets, checklists, and decision-support materials used to accelerate real-world application and reduce setup time.
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What does the Operational Controls in Operational Risk Management course cover?

Operational Controls in Operational Risk Management is covered here in 10 modules: Establishing the Operational Risk Governance Framework, Designing and Implementing Key Risk Indicators (KRIs), Operational Risk Control Self-Assessment (RCSA) Execution and 7 more. The outline lists 80 specific topics, opening with define the scope of operational risk ownership across business units versus centralized risk functions.

How do you approach Operational Controls in Operational Risk Management step by step?

The work is sequenced in 10 stages. It starts with Establishing the Operational Risk Governance Framework, moves through Designing and Implementing Key Risk Indicators (KRIs) and Operational Risk Control Self-Assessment (RCSA) Execution, and ends at Data Governance and Risk Analytics. Each stage carries its own topic list, so the sequence is followed rather than summarised.

What is in Module 1 of the Operational Controls in Operational Risk Management course?

Module 1 is Establishing the Operational Risk Governance Framework. It works through define the scope of operational risk ownership across business units versus centralized risk functions., select and justify the use of RCSA (Risk Control Self-Assessment) over third-party audits based on control maturity., determine reporting lines for operational risk incidents to ensure timely escalation to the board or risk committee.

How is the Operational Controls in Operational Risk Management course delivered?

The Operational Controls in Operational Risk Management course is fully self-paced with immediate online access after enrolment. Access does not expire and future updates are included at no cost. It can be taken on any device, and a certificate of completion is issued by The Art of Service when you finish.

How much does the Operational Controls in Operational Risk Management course cost?

The Operational Controls in Operational Risk Management course is $352 as a one time payment. There is no subscription, no per seat licence and no hidden fee. Enrolment carries a 30 day satisfied or refunded guarantee, so it can be assessed in full before you commit.

Closely related courses: Operational Controls in Operational Security Kit, Control Measures in Operational Risk Management, Internal Control in Operational Risk Management, Operational Controls in COSO Kit.

More answers: what you get with every course, refund policy, all help answers.

This curriculum spans the design and execution of operational risk controls across governance, incident management, third-party oversight, technology integration, and regulatory compliance, comparable in scope to a multi-phase advisory engagement supporting the implementation of an enterprise-wide operational risk framework.

Module 1: Establishing the Operational Risk Governance Framework

  • Define the scope of operational risk ownership across business units versus centralized risk functions.
  • Select and justify the use of RCSA (Risk Control Self-Assessment) over third-party audits based on control maturity.
  • Determine reporting lines for operational risk incidents to ensure timely escalation to the board or risk committee.
  • Implement a risk taxonomy that aligns with regulatory expectations (e.g., Basel, SOX) and internal audit requirements.
  • Negotiate authority thresholds for local control owners versus centralized risk overrides in decentralized organizations.
  • Integrate operational risk appetite statements into business planning cycles and capital allocation models.
  • Decide on the frequency and format of risk reporting dashboards for executive versus operational stakeholders.
  • Balance regulatory compliance requirements with business agility when defining risk governance policies.

Module 2: Designing and Implementing Key Risk Indicators (KRIs)

  • Select leading versus lagging indicators based on the predictability of control failure in high-risk processes.
  • Set KRI thresholds using historical incident data, stress testing, or industry benchmarks.
  • Integrate KRI data feeds from HR, IT, and operations systems into a centralized risk data warehouse.
  • Address false positives in KRI alerts by tuning sensitivity levels without compromising early warning capability.
  • Assign accountability for KRI monitoring and escalation to specific operational roles.
  • Validate KRI effectiveness through back-testing against actual operational loss events.
  • Adjust KRI definitions when business process changes (e.g., automation, outsourcing) alter risk profiles.
  • Coordinate with compliance teams to ensure KRIs support regulatory reporting obligations.

Module 3: Operational Risk Control Self-Assessment (RCSA) Execution

  • Determine the optimal frequency of RCSA cycles (quarterly vs. annual) based on control volatility.
  • Train process owners to assess control design and operating effectiveness without over-reliance on internal audit.
  • Standardize scoring methodologies across business units to enable aggregation and benchmarking.
  • Resolve discrepancies between self-assessed control ratings and internal audit findings.
  • Link RCSA outcomes to action plans with assigned owners and timelines for remediation.
  • Use RCSA data to inform insurance purchasing decisions and capital modeling.
  • Implement digital RCSA tools while maintaining audit trails and version control.
  • Address resistance from business units by aligning RCSA outcomes with performance incentives.

Module 4: Incident Management and Loss Data Collection

  • Define materiality thresholds for operational loss event reporting across business lines.
  • Implement a centralized incident logging system with mandatory fields for root cause and financial impact.
  • Classify incidents using standardized event types (e.g., internal fraud, system failure) for regulatory reporting.
  • Conduct root cause analysis using techniques like 5 Whys or Fishbone diagrams for major incidents.
  • Ensure incident data feeds into capital models and scenario analysis for OpRisk VaR.
  • Enforce timely incident reporting by integrating with HR and compliance disciplinary processes.
  • Validate loss data accuracy through reconciliation with financial ledgers and insurance claims.
  • Manage reputational risk by coordinating incident disclosure protocols with legal and PR teams.

Module 5: Third-Party and Outsourcing Risk Controls

  • Conduct due diligence on third-party vendors using standardized risk assessment questionnaires.
  • Negotiate SLAs and penalties that reflect operational risk exposure in outsourcing contracts.
  • Implement ongoing monitoring of vendor performance using KRIs and audit rights.
  • Map critical third-party dependencies to business impact analysis and continuity plans.
  • Enforce segregation of duties between vendor staff and internal employees in shared systems.
  • Require vendors to report security incidents and control failures within defined timeframes.
  • Assess concentration risk when multiple business units rely on a single third-party provider.
  • Conduct on-site audits of high-risk vendors or require independent attestation reports (e.g., SOC 2).

Module 6: Technology and Cyber Risk Integration

  • Map IT system dependencies to critical business processes for risk prioritization.
  • Integrate cyber incident data into the operational risk loss database for aggregation.
  • Define roles for IT, security, and risk teams in managing technology-related operational risks.
  • Implement automated controls monitoring for privileged access and configuration changes.
  • Align technology risk assessments with RCSA cycles and update frequency.
  • Use penetration testing results to update threat models and control gaps.
  • Ensure backup and recovery procedures are tested and documented as part of operational resilience.
  • Address shadow IT by enforcing governance over unsanctioned software and cloud services.

Module 7: Change Management and Project Risk Oversight

  • Embed operational risk assessments into project initiation and stage-gate approval processes.
  • Require project managers to identify and mitigate new control gaps introduced by system changes.
  • Assess the operational risk impact of organizational restructuring or site closures.
  • Review post-implementation reviews for control effectiveness within 90 days of go-live.
  • Coordinate with IT change advisory boards (CAB) to evaluate risk of production deployments.
  • Track change-related incidents to identify patterns in failed rollouts or configuration errors.
  • Define rollback procedures and fallback controls for high-risk system upgrades.
  • Ensure training and documentation are updated before operational handover of new systems.

Module 8: Operational Resilience and Business Continuity

  • Conduct business impact analyses (BIA) to prioritize recovery of critical functions.
  • Define recovery time objectives (RTO) and recovery point objectives (RPO) with business owners.
  • Test disaster recovery plans annually with participation from IT, facilities, and operations.
  • Validate alternate site readiness, including data replication and workforce access.
  • Integrate cyber resilience scenarios into business continuity testing.
  • Update crisis management communication trees and escalation protocols quarterly.
  • Ensure third-party providers have aligned business continuity plans for critical services.
  • Document lessons learned from tests and real incidents to refine response plans.

Module 9: Regulatory Compliance and Supervisory Expectations

  • Map operational risk controls to regulatory requirements such as Basel III, GDPR, or SOX.
  • Prepare regulatory submissions (e.g., Pillar 3 disclosures) using auditable risk data.
  • Respond to supervisory findings by linking control gaps to remediation plans.
  • Coordinate with legal and compliance teams to interpret new regulatory guidance on OpRisk.
  • Maintain evidence of control testing and monitoring for regulatory examinations.
  • Adjust risk appetite metrics in response to supervisory feedback or thematic reviews.
  • Implement governance controls for model risk in operational risk capital calculations.
  • Report material operational losses to regulators within mandated timeframes.

Module 10: Data Governance and Risk Analytics

  • Define data ownership and stewardship roles for operational risk data sources.
  • Establish data quality rules for loss, control, and KRI datasets used in reporting.
  • Integrate risk data from siloed systems (ERP, HRIS, ITSM) into a unified data model.
  • Apply statistical methods to identify trends and anomalies in operational loss patterns.
  • Use scenario analysis to estimate potential losses where historical data is insufficient.
  • Validate the accuracy of risk models through back-testing and expert challenge.
  • Ensure data privacy and access controls are enforced in risk analytics platforms.
  • Support stress testing exercises with scenario-driven operational risk loss projections.
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