Developing a Risk Mindset Course

Developing a risk mindset

Risk management means understanding the possibility of a particular outcome occurring – specifically the chance of a bad outcome. In the financial sector, risk management has changed significantly over the past decade and for organisations to manage risk, all frontline staff must be an effective first line of defence. This means developing a risk mindset.

If you’re serious about a career in banking and finance, then you need to have a firm understanding of risk management. This course has been designed to give you an overview of the different risks banks face, the importance of a well-implemented risk management framework, and your role in mitigating and reporting risks.

Who can study this programme?

Developing a risk mindset is a short, interactive course open to:

front-line staff currently working in a bank or financial institution
those who are interested in getting into a risk related role
those looking to increasing their knowledge of risk.

This is an entry-level course that will teach you the fundamentals of operational risk. It is not essential that you complete An Introduction to Operational Risk first but it will help you when progressing your learning with this course.

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

Risk in business and financial services
Principles of risk management
Business risk identification and assessment
Risk management strategies

Your programme in a glance

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

Module information

- Understand what risk is and why banks take certain risks
- Detail the difference between risk and uncertainty
- Understand how different banks and their customers generate different levels of risk
- Understand how not managing risk impacts banks
- Discuss the types of risks commonly generated by banks
- Consider both internal and external risks
- Explain why risk management is a core activity for a bank
- Outline the consequences of failure to manage risk including the impact on a bank’s stakeholders and the wider economy
- Discuss why risk has a much larger impact on a bank than on other types of organisations
- Understand the objectives and core components of international risk-based regulations and frameworks
- List the eight principles of effective risk management
- Describe the stages within the risk management process
- Understand the term risk governance and its underlying principles
- Appreciate how staff behaviour can impact the effectiveness of risk management
- Explain the difference between enterprise risk management and traditional approaches
- Detail methods for monitoring enterprise risk indicators and risk management activities
- Understand how banks identify risks across businesses
- Outline risk assessment activities for various types of risk
- Explain how the three lines of defence model is used to define roles and responsibilities
- Discuss risk event identification technologies adopted by banks
- Describe how banks analyse risk events in business units
- Describe risk management strategies, frameworks, policies, procedures and practices
- Understand how management support risk management at an operational level
- Explain the components of risk management plans
- Assist with risk planning in consultation with relevant stakeholders
- Discuss change management techniques to facilitate implementation of risk controls, risk management and risk response activities
- Understand possible risk control activities to support the implementation of risk management responses
- Document and track risk management outcomes, and understand the importance of monitoring risk using key risk indicators (KRIs)
- Understand the importance of maintaining records of the risk management processes and its outcomes
You can find more details about your Developing a Risk Mindest course here:

Qualification specification

Why study this course?

A bank generates a wide range of risks depending on the nature of its business. The main ones are credit risk, market risk, operational risk (including data governance risk and reporting risk), liquidity risk, technology and information risk (including cyber risk), and strategic risk.

Banks can also be affected by external risk events beyond their direct control.

Banks must manage these risks in order to:

prevent loss
ensure survival
protect their reputation
safeguard stakeholders’ interests
comply with regulations and laws
protect the bank’s credit ratings.

When managing risks, a bank can adopt one of five basic mitigation strategies: risk avoidance, risk retention, risk sharing, risk transfer or risk reduction. Implementing a risk framework can be a complex challenge and careful planning is required.

Each individual bank decides its own approach. This could be an internationally recognised standard, such as Basel or ISO 31000:2018, or a bespoke framework. Whatever the approach, the framework should conform to sound risk management principles.

Banking professionals at all levels need to be familiar with their organisations risk frameworks and what their responsibilities are within them. As the risk landscape continues to evolve, it’s never been more important for frontline banking staff to understand the fundamentals of effective risk management.

What you'll learn?

Banks need to identify and assess the types of risk to which they are exposed. This can involve staff at every level. Developing a Risk Mindset has been designed to give you a better understanding of the risk management process, from the ground up.

Typically, there are five stages:

identification
assessment
measurement
mitigation and control
monitoring and reporting.

During this short course, you’ll learn more about these stages and explore what risk is and why banks take certain risks. You’ll learn to understand the difference between risk and uncertainty before exploring what can happen if banks don’t manage the risks they take.

Fees

To register for Corporate Governance 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 Corporate Governance please email corporate@libf.ac.uk for further information.

Registration

£320
Register now

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.

Developing a risk mindset