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LIBF Part of Walbrook Institute London
Digital banking

An Introduction to Operational Risk

An Introduction to Operational Risk

Operational risks affect everyone and can occur anywhere within a business. Losses can be financial, but they can also be non-financial, such as reputational damage. They can also result in regulatory action, including monitoring, growth limits or even fines. Put simply, the consequences of a risk event can be considerable – both financially and commercially.

A business needs to take risks if it is to thrive and grow, but these risks must be managed and kept within acceptable limits. Failures in operational risk management can arise through lapsed processes, inadequate systems, or poor governance. As such, it’s critical that operational risk is effectively managed by staff at all levels.

Who can study this programme?

An introduction to operational risk is a short, interactive course open to those who:

  • currently work in a bank or financial institution

  • are interested in getting into a risk related role

  • are looking to increasing their knowledge of risk.

As this is an entry-level course it will teach you the fundamentals of operational risk.

Key information

Fees

  • £320

Study duration

  • Five hours – but you have up to six months from registration to complete

  • Everything is online, so you can study at a pace that suits you

Modules

  • Four modules

Your studies will cover

  • An introduction to risk management frameworks

  • What is operational risk management?

  • The importance of reporting potential risks

  • An introduction to managing operational risk

Your programme at a glance

  • laptop

    Studying

    As you work through the course you’ll do different activities, with diagrams, videos, and quizzes to support your learning.

    Each unit can be studied in less than two hours and there is a short quiz at the end of each topic to test your learning. You can also go back and review topics if you need extra support.

  • check-badge

    Digital Certificate

    After you’ve completed the short course, you will receive a digital certificate of completion.

Module information

Why study this course?

Risk management has never been more critical. The global financial crisis and the fallout from the COVID-19 pandemic both highlighted the importance of effective operational risk management and the consequences of risk management failures.

For banks and financial firms, risk is typically split into three categories:

  • business risk

  • financial risk

  • and operational risk

Operational risks are an unavoidable consequence of doing business. Whereas a bank could choose not to trade in certain markets or instruments to minimise financial risk, it cannot opt out of operational risk. All banks face operational risk and must effectively manage it – and this means that all staff must understand their role within an organisation’s risk management framework.

A risk management framework is one of the key processes used to help manage different types of risk. It provides an organisation a consistent approach by creating the means to discuss, compare, evaluate, and control substantially different risks.

What you'll learn?

This short course helps you understand the fundamentals of risk management frameworks and some of the operational risks you may encounter. It introduces you to concepts including how to identify risks, how enterprise-wide risk management works and the consequences of failing to manage risk.

By the end of this course you’ll be able to:

  • understand the different types of risk banks face

  • identify possible red flags

  • identify key consequences (financial and non-financial) of operational risk management failures

  • understand the main causes and effects of operational risks for banks and their stakeholders

  • see how business continuity planning, scenario analysis and stress testing is used to manage and minimise the impact of operational risk

  • understand the main aim of operational risk reporting.

Fees

To register for an Introduction to Operational Risk please complete our registration form.

You can also call our Customer Services team on +44 (0) 1227 818 609 or talk to them on live chat.

Corporate bookings
If you are a company and want to register a cohort of students onto an Introduction to Operational Risk please email corporate@libf.ac.uk for further information.

Request more information

Questions about our professional qualifications?

If you have any questions about our professional qualifications in finance and banking, please contact our customer services team.

Our professional qualification customer services office is open:
Monday to Friday from 8.30am to 5.30pm UK time.

Student adviser ready to help you through any queries