CISIL US ALIGNED CERTIFICATION

Operational Risk Management

A comprehensive program on how operational risk affects financial institutions and the mechanisms to identify, assess, and mitigate such risks, aligned with global best practices.

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Course Details
Mode

Online / Hybrid

Assessment

1-hour CISI online examination with 50 multiple-choice questions

Overview

The Operational Risk Management program, aligned with the Chartered Institute for Securities & Investment (CISI, UK), provides a comprehensive understanding of how operational risk affects financial institutions and the mechanisms used to identify, assess, and mitigate such risks. The course focuses on global best practices, regulatory frameworks, and governance models that shape risk management in modern finance.

Objective of the Program

To equip learners with the knowledge and practical skills needed to manage operational risk across banking, investment, and financial services sectors. The program focuses on the identification, measurement, and control of operational risk to ensure compliance, resilience, and effective governance.

Operational Risk Management

Examination Specification

The 1-hour exam consists of 50 multiple-choice questions distributed as follows:

3
Element 1: Risk Basics
7
Element 2: Other Major Risks
20
Element 3: The Nature of Operational Risk
4
Element 4: The Causes and Impacts of Operational Risk
5
Element 5: Operational Risks Arising in the Trade Cycle
7
Element 6: The Support and Control Functions
4
Element 7: Operational Risk in the Regulatory Environment
50
Total Questions

Program Structure

The syllabus is divided into seven key elements, each addressing a critical component of operational risk management.

Element 1: Risk Basics

Covers the fundamentals of risk management in financial services, including credit, market, liquidity, and operational risk. Introduces Enterprise Risk Management (ERM) and the role of the Board and Chief Risk Officer (CRO) in risk governance.

Learning Outcomes:

  • Understand different types of risk in financial institutions
  • Recognize the importance of ERM in achieving organizational stability
  • Learn from real-world case studies (e.g., LIBOR, Wells Fargo, HSBC)

Element 2: Other Major Risks

Explores credit risk, market risk, and liquidity risk—their nature, measurement, and mitigation. Introduces Value-at-Risk (VaR), hedging, diversification, and liquidity ratios (LCR, NSFR).

Learning Outcomes:

  • Understand and apply key risk measurement techniques
  • Analyze credit and market exposure using modern quantitative methods
  • Learn mitigation strategies using hedging and diversification tools

Element 3: The Nature of Operational Risk

Provides a detailed understanding of operational risk definitions, categories, and governance principles under the Basel framework. Focuses on risk culture, appetite, and assessment methodologies such as self-assessments, scenario analysis, and benchmarking.

Learning Outcomes:

  • Identify sources of operational risk across business units
  • Understand the "Three Lines of Defence" model
  • Develop effective operational risk management frameworks

Element 4: Causes and Impacts of Operational Risk

Examines common causes (e.g., system failures, human error, fraud, non-compliance) and their financial and reputational impacts.

Learning Outcomes:

  • Link causes, events, and impacts of risk
  • Recognize the financial and non-financial implications of risk events
  • Apply near-miss identification and reporting systems

Element 5: Operational Risks Arising in the Trade Cycle

Analyzes risks across all stages of the trade lifecycle - set-up, execution, pre-settlement, settlement, post-settlement, and asset servicing.

Learning Outcomes:

  • Understand operational risks in trading, settlement, and reconciliation processes
  • Manage risks related to corporate actions, collateral, and custody services

Element 6: Support and Control Functions

Covers the vital role of support units like Compliance, HR, IT, Legal, Audit, and Risk Governance. Introduces Project Management and Change Management as critical control components.

Learning Outcomes:

  • Understand how support functions mitigate operational risk
  • Explore control frameworks for compliance and governance

Element 7: Operational Risk in the Regulatory Environment

Reviews international regulatory frameworks such as Basel Accords, MiFID II, Dodd-Frank, EMIR, FATCA, GDPR, and UCITS V. Focuses on capital adequacy, conduct risk, and reporting standards.

Learning Outcomes:

  • Apply Basel Pillars 1, 2, and 3 in operational risk context
  • Understand international regulations affecting risk management

Career Opportunities

Graduates of this program can pursue roles such as:

  • Operational Risk Analyst / Associate
  • Compliance and Audit Specialist
  • Risk Reporting Executive
  • Process Control and Governance Officer
  • Enterprise Risk Management Consultant

Key Benefits

  • Globally recognized CISI certification
  • Understanding of real-world risk events and mitigation strategies
  • Exposure to international compliance frameworks and Basel standards
  • Enhances employability in financial operations and risk governance roles

Ready to Master Operational Risk?

Take the next step in your career with a globally recognized certification. Enroll today and gain the skills to excel in the financial industry.

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