Operational Risk Management (ORM) and Financial Crises

IntroductionOperational risk management is a critical aspect of financial institutions and businesses worldwide. Understanding and mitigating these risks can protect organizations from significant financial losses and ensure sustainable operations. This course, "Operational Risk Management (ORM) and Financial Crises," covers essential topics to equip students with the knowledge and skills needed to manage operational risks effectively and navigate financial crises.

Section 1: Operational Risk ManagementThis section introduces students to the foundational concepts of operational risk management. Students will learn about the processes and frameworks involved, including Risk Control Self-Assessment (RCSA) and scenario analysis. The section also explores various approaches such as the Basic Indicator Approach, Standardized Approach, and Advanced Management Approach.

Understanding the types of operational risk losses and engaging in self-evaluation testing will help students develop a comprehensive risk management strategy. Section 2: Global Economic Crisis - Liquidity ManagementStudents will delve into historical and contemporary economic crises, starting with the Great Depression of 1929 and the Financial Crisis of 2008. This section covers the causes, effects, and responses to these crises, emphasizing liquidity management.

Key topics include securitization processes, credit default swaps, and the rescue measures undertaken during financial crises. Students will also learn about liquidity risk assessment, management principles, stress testing frameworks, and important ratios like the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). Section 3: Corporate GovernanceIn this section, students will explore the principles and practices of corporate governance.