Enterprise & Operational Risk for Investment Managers

This is a unique course, focussing on operational and enterprise risk for investment managers drawing on practical industry experience.

Risk management is not about eliminating risk but about helping the firm to take balanced, commercial decisions and to drive efficiency. The principle aim of an operational and enterprise risk management framework and function is to help the business make the right decisions and achieve its strategic objectives.

A robust enterprise risk framework and well-resourced operational risk function helps to ensure continued financial strength and durability, to prioritise resources and to organise functions, teams and processes. This is achieved by providing Senior Management, and the Board, with an accurate view of the risk environment in which the company is operating, articulating the risk appetite and driving it through the decisions taken by the business at all levels. The quality of a firm’s enterprise and operational risk programme and its operational risk function is also a factor in clients’ selection and retention decisions.

The course takes account of the FCA’s new prudential requirements regime (IFPR)—in particular the changes that firms will need to make to ensure that their risk identification process, risk appetite statements and risk taxonomy reflect the new focus on harms to clients and markets.

The course is interactive and practical, with the opportunity for delegates to discuss their own approaches.

Key Learning Objectives

• Understand the risk governance framework required for an asset management firm and how to implement the necessary elements.
• Be able to express and document the firm’s risk appetite.
• Understand the three lines of defence model and the roles that each part of the firm and individual staff members need to play.
• Understand the governance and oversight arrangements required for outsourcing.
• Be able to identify, assess and manage emerging risks.
• Understand the key elements of a firm’s operational risk framework and how they interact.
• Understand the need for a properly defined risk taxonomy and how to avoid common mistakes in developing a risk taxonomy.
• Understand the approach to loss event reporting.
• Understand Risk & Control Self-Assessment (RCSA) principles.
• Be able to identify and quantify operational risk scenarios and how to relate these to the K-factors.
• Understand the practical issues relating to operational risk workshops.

Contact the IA Training Team to ask questions regarding any of the courses we run, or if you are experiencing problems or difficulties when attempting to register, please email: Training@theia.org

09:30   Welcome, background and Enterprise Risk session objectives

09:45   Risk governance framework:

• Elements of framework
• Identifying enterprise risks from the firm’s business model
• Roles and responsibilities
• Committee responsibilities
• Individual responsibilities
• Regulatory governance and conduct rules

10:30   Risk appetite:

• Definition
• Identification
• Qualitative and quantitative measures
• Reporting

11:15   Morning coffee

11:30   Three lines of defence model:

• Purpose and function of 3LoD model
• Roles and responsibilities
• Communication and implementation of 3LoD

12:00   Outsourcing:

• Definition
• Oversight
• Exit planning

12:45   Lunch

13:15   Emerging risk management:

• What is an emerging risk?
• Identification and assessment
• Managing and reporting emerging risks

14:00   Operational Risk session objectives

14:10   Operational risk management framework:

• Operational risk governance, roles and responsibilities
• Risk taxonomy and risk identification
• Key risks and indicators
• Loss event reporting

15:00   Risk and control self-assessment:

15:30   Afternoon tea

15:45   Operational risk scenarios:

• Scenario identification
• Running operational risk scenario workshops
• Scenario quantification

16:30   Q&A

17:00   Course conclusion

This training course is run under the Chatham House Rule, for reference please see here

The programme should be of interest to both investment management firms and those providing services to such firms, in particular consultants, accountants and legal firms. It will appeal in particular to those engaged in Executive Management, Business Development, Investment Management, Institutional Relationship Management, Investment Operations and Administration, Finance, Risk, Compliance and Legal.  It will also be relevant for specialists from organisations that support or provide services to investment management firms, such as Third Party Administrators, Consultants, Professional Services Advisers and Regulators.  

The course does not assume any prior knowledge of the subject and is suitable both for those seeking to develop their risk management expertise and for non-risk staff who wish to gain a broad overview of enterprise and operational risk. In addition, more experienced staff will benefit from specialised material that is difficult to find in other courses, such as outsourcing risk management, three lines of defence, emerging risk management and operational risk scenario development.

Ian Davies

Ian Davies has over 35 years of financial services experience and specialises in risk management for investment managers. Ian was the founder chair of the Investment Association’s Risk & Regulation Committee and now owns idearisk ltd., providing training via the Investment Association as well as providing advice directly to boards and senior management. Over 500 people have benefited from attending one of Ian’s training courses, which are consistently well rated.

Ian is one of the UK’s leading experts on risk governance, capital and stress testing for investment managers and he implemented operational risk management frameworks and operational risk capital models at Man Investments, JPMorgan Asset Management and Schroders, where he was Group Risk Committee secretary. He also developed and implemented emerging risk management approaches for Schroders and Aviva Investors. In addition, Ian developed and implemented ICAAPs for JPMAM, Schroders and Aviva Investors.

IA Member £645.00 +VAT
Non-Member £795.00 +VAT

Pay using a credit card online, or if you wish to be invoiced please email your full details to: Training@theia.org

PLEASE NOTE: Full payment for the course must be made prior to the course commencement date.

• Any cancellation must be made in writing.
• For all cancellation received 15-30 days prior to the course start date, 50% of the course fee is still payable.
• No refund is given for a cancellation made 14 days or less prior to the commencement of a course.
• Transferring from one course to another is treated as a cancellation. You can substitute one delegate for another at no additional cost. In this instance, please give two business days’ notice.

This course is being held virtually via Microsoft Teams.