Risk Management (for ARMs)
About This Course
This 4-hour course provides a comprehensive understanding of the generic enterprise risk management practices and risk concepts commonly deployed in the financial industry to enhance the overall enterprise risk management. The complexity of today’s interconnected financial markets and globalization is exposing organizations to numerous operational, technological and business threats that could lead to substantial data and financial losses as well as reputational damages.
Designed for private banking professionals managing or supporting risk-taking activities for business growth and performances, this programme focuses on the practical considerations in the design, adoption and implementation of systems and processes for optimal enterprise risk and GRC management, aligned to MAS and global regulations. It covers the key enterprise risk management concepts and best practice implementation approaches, including its management and applications to IT and cyber risks. It will also go beyond that and address the practical usage of that knowledge; with case studies and examples.
Who Should Attend
- Assistant Relationship Managers in Private Banking
- Operations functions in Private Banking
- Covered persons under Private Banking Code of Conduct who may be interested
- Assist with risk planning in consultation with relevant stakeholders
- Support risk assessment at operational level
- Implement risk controls according to defined risk management policies and plans
- Identify and assess possible risk response activities for consideration in the risk management process
- Conduct risk response activities in accordance with risk management plans
- Apply change management techniques to facilitate implementation of risk controls, risk management and risk response activities
- Document and track risk management outcomes according to information format requirements and present documentation to relevant stakeholders for review
Principles of effective risk management
- Designing & Implementing a best practice GRC framework, incl. systems, policies & procedures incl. risk appetite setting
- Clear GRC governance incl. 3 or multiple LoD
- Roles and responsibilities with clear policy making on Code of Conduct and Fiduciary Responsibility
- Independent risk model review and validation, reporting to the Board
Risk management strategies, frameworks, policies, procedures and practices
- Board and Senior Management accountability on Strategy and risk appetite setting
- Key elements of Enterprise Risk Management/GRC Framework – Cycle of Objective, Risk Identification, Assessment, Response / Mitigation, Monitoring & Reporting
Components of risk management plans
- GRC Framework implementation, compliance and review
- Risk appetite setting, risk tolerance and limit management
- Contingency Planning including incidence response and recovery
Risk analyses and assessment processes
- Risk identification and assessment methodologies incl. use of surveys, incidence management, loss data and RCSA
- Risk response
- Risk monitoring and reporting
Types of records of risk management process and outcomes
- Design of risk registers / templates as part of records or document management
- Dynamic reporting incl. on outcomes and actions taken, with charts, dashboards and heatmaps
Methods for monitoring enterprise risk indicators and risk management activities
- Top-down and bottom-up risk registers, linking the enterprise layer to business units in the organisational hierarchy
- Risk connectivity chart and ecosystem view with alignment in ERM standards and framework processes, policies and procedures (incl. speaking the same language/risk taxonomy, data lineage and traceability, etc.)
Financial services industry specific risks
- Basel 3/4 banking regulations incl. the 3 Pillars of the Basel Accord
- IT and Cyber Risks encompassed by MAS TRM, 3rd Party and Cyber Hygiene Regulations
- ALM, Liquidity, Contagion, operational risk (as part of Pillar 1) and IRRBB
Concluding Remarks, Q&A, Summary of Key Points, Course Feedback and MCQ Assessment
Dr Khoo Guan Seng
PhD in Computational Physics (NUS)
GS Khoo has over 30 years of AI, data-mining, management and startup work-experience, focusing on risk and hedge fund analytics. He joined CAI in Feb 2016, after relocating back from Canada, where he was the Head of ERM with one of the largest Canadian pension fund managers, AIMCo, which he joined in 2011.
Prior to AIMCo, He was with Temasek Holdings, which he joined in 2009 from Standard Chartered Bank, where he was the Global Head/MD, Group Risk Analytics, heading the global team performing all global risk models validation for Basel & BIPRU compliance, and liaised with all the financial regulators in Europe, Asia, Africa and the Middle East, including the FSA (UK), the FSS (Korea), CBRC, HKMA and MAS (Singapore). At Temasek Holdings, he focused on developing novel investment performance and portfolio risk management metrics, applicable across the whole spectrum of investment asset classes and horizons.
In his other previous roles, he designed and managed an algorithmic hedge fund at Man Investment Products (Man Group plc.) in the 90s, was Head of Innovation (Strategy & Business Devt.) at the Singapore Exchange, was Group Chief Risk Officer at a SE Asian conglomerate (RHB Capital, Malaysia) and was based in Chicago and Denver in 2001-02 at American Bourses Corp (ABC, spun off from the Man Group), providing AI-based investment and trading analytics to clients trading on the ECNs in N America and in the Asia Pacific. At ABC, he managed the launch and production of the financial portals of SPH, asiaonemarkets.com and zaobaofinance.com in 2000. He also provided advisory services to the regulators, family offices, research institutes, global and Asian banks in the Asia-Pacific region on data-mining, ERM, Basel 2 and 3.
In addition, he has also advised startup and IT companies in S’pore, Silicon Valley and Vancouver, B.C in BigData, FinTech, and Energy Farming. He has a PhD in Physics, and has done post-doctoral work at Nagoya University, MSI’s (Molecular Simulations Inc.) research centers at Caltech (Pasadena, California), Boston and at Teijin-MSI in Tokyo, Japan on computer-aided drug design. In academia, he published over 30 journal papers on financial engineering, artificial intelligence (AI) applications in financial markets and materials science.
He has also published chapters on sovereign investing in “Sovereign Investments” (Riskbooks/IncisiveMedia, 2013), enterprise risk management for financial institutions in “Operational Risk 2.0”, (Riskbooks/IncisiveMedia, 2007), investment management in “Sovereign Asset Management for a post-crisis World”, (Riskbooks, 2011). Other publications included articles in Investment & Pensions Asia (IPA) magazine (Sept/Oct issue, 2010) where he demonstrated a deficient frontier outcome (instead of efficient frontier), entitled, “Rethinking Investment Decision-making post-GFC (Global Financial Crisis)” as well as on “Strategic Risk Allocation” in IPA Magazine (Sept/Oct 2011 issue). He has also been a speaker on ICAAP, Stress Testing, Model Validation and Economic Capital at RISKMINDS (Geneva, 2008) and RISKCAPITAL (Brussels, 2009), panelist on “Investing Beyond BRICs” at the 2013 Taft-Hartley Pension Fund Forum in Los Angeles, “Long-term Investing” & “Hedge Fund Investing” at the Asia & Middle East Govt. Funds Roundtable, (Institutional Investors, 2012-2015) and on “Emerging Markets and FX Risks” at the Asian Pension Funds Roundtables (Pacific Pension Institute, 2010-2015). He has also presented a paper on “Valuation & Risk Issues in Illiquid Investments”, in Seoul, S. Korea for Korea’s pension fund association in 2012.
This programme has been accredited under the IBF Standards, and is eligible for funding under the IBF Standards Training Scheme (IBF-STS), subject to all eligibility criteria being met. Candidates are advised to assess the suitability of the programme and its relevance to participants’ business activities or job roles.
For latest development on the Enhanced Funding Support for IBF-STS, please visit the IBF Standards Training Scheme site.
About the IBF Standards
The IBF Standards are a set of competency standards for financial skills. These Standards are developed in partnership with industry leaders and provide a professional development and skills roadmap for financial sector practitioners to excel in their respective job roles. They currently cover 12 industry segments in the financial sector.
About the Institute of Banking and Finance Singapore
The Institute of Banking and Finance Singapore (IBF) is the national accreditation and certification agency for financial industry competency in Singapore under the IBF Standards. Find out more on www.ibf.org.sg
Early Bird Discount
Enjoy 10% early bird discount when you register one (1) month before the course commencement date.