IA Webinar: Operational Risk Quantification: What the FCA Really Expects – Insights from FCA Model Reviews
Description
Drawing on first-hand experience leading the assessment of operational risk capital models at the FCA, this webinar provides a unique regulatory perspective on what works, what fails, and what supervisors really look for when evaluating firms' approaches to operational risk quantification.
Having reviewed a wide range of models across the industry and developed benchmarking approaches used to assess the appropriateness of operational risk capital requirements, Awat Rahimi will share practical lessons from regulatory reviews and explain the common weaknesses that frequently undermine otherwise sophisticated modelling frameworks.
The session will explore what constitutes a credible operational risk quantification approach, how diversification benefits can be demonstrated convincingly, and why some models fail to withstand supervisory challenge. Attendees will gain insights into how regulators assess models, data, assumptions and governance, together with practical considerations that remain highly relevant for firms operating under today's prudential frameworks.
This webinar will not be recorded.
AGENDA
- What Good Operational Risk Quantification Looks Like
- Choosing the Right Quantification Approach
- Why Operational Risk Models Fail Regulatory Scrutiny
- Achieving Credible Diversification Benefits
- How the FCA Reviews Operational Risk Capital
- Practical Lessons from Real Supervisory Assessments
- Q&A
SPEAKERS
Zainab Yazdansetah, Senior Policy Adviser, The Investment Association
Zainab is a Senior Policy Adviser at the Investment Association, with responsibility across SM&CR, FSCS levies, FOS and the IA’s prudential portfolio, particularly the Investment Firms Prudential Regime (IFPR). She manages the IA’s Prudential Committee and Legal Committee, coordinating member input and external engagement. Zainab also successfully led and advocated the IA’s work on the FCA’s Enforcement Guide and proposals on greater transparency of enforcement investigations, whereby the FCA did not adopt routine day‑one publication of named investigations. Prior to joining the IA in October 2022, Zainab spent over eight years at the Financial Conduct Authority, working on conduct programmes for international sell‑side firms and serving as a Senior Case Officer in Retail Banking Authorisations, where she led on complex retail banking propositions.
Dr Awat Rahimi, Director, Regulatory Consulting, Kroll Advisory Ltd
Dr Awat Rahimi is a Director in Kroll's Regulatory Consulting practice and an expert in operational risk quantification and prudential regulation. A former FCA prudential specialist, he designed the FCA's capital assessment framework for investment firms, led operational risk modelling and benchmarking, and developed the quantitative methodologies used to determine whether firms' held adequate financial resources. He also helped shape the regulator's prudential data strategy. He now advises financial institutions on operational risk quantification, capital adequacy, ICARA assessments and risk and capital optimisation, helping organisations meet evolving regulatory expectations and strengthen risk management practices.
WHO SHOULD ATTEND
- Risk
- Finance
- Operations
- Head of Risk
- Head of Finance
- Head of Operations
- Head of Operational Resilience
PRICING
Free to attend