Session
Description:
The
events of September 11th, together with the disasters of the
past and the excesses of an Enron, require financial institutions
to take a more focused look at the risks they face for the
businesses they choose to operate. In addition, the soon to
approved Basel Accord from the BIS has introduced the concept
of "operational risk" that will impact a financial institution's
regulatory capital. For the uninitiated, the BIS defines operational
risk as "the risk of loss resulting from inadequate or failed
internal processes, people and systems or from external events".
While this definition is useful, by itself it provides only
limited guidance to those whose responsibilities include planning
for the future, executing the plan and then deciding if the
institution's resources have earned a fair return.
During
this seminar we will explore some possible solutions to the
following questions:
- Operational
risk thru time - how to learn from others mistakes (i.e.
the 10 biggest losers and why it shouldn't have happened)
- What
is the probability that any one of a number of operational
risks will occur in a given business? (e.g. internal failures
such as fraud, process failure or inadequate staff or external
failures like power shutdowns, explosions or unstable governments)
- What
is the expected value (i.e. amount of the risk x probability
of an event occurring) or value at risk generated by these
risks (Hopefully it is less than the total amount of capital
invested in the firm)
- What
type of risks can be controlled, short of getting out of
the business?
- How
important is operational risk and what is its relationship
between other types of risk such as credit risk, market
risk, etc?
- What
limits should I be setting to remain competitive with my
peers (if not I should be getting out of the business)
- How
and when do I know all of the above? (Certainty of knowledge
after the fact is not reassuring)
What
will you gain from attending this seminar?
- Understanding
the new rules for financial institutions
- Integrating
these rules into an appropriate risk based business model
- Setting
appropriate risk based goals (such as risk adjusted return
on capital)
-
Learn about resources available to help me set realistic
goals
This
program is appropriate for Operational or credit risk managers,
Portfolio managers, and senior financial executives with responsibility
for Risk or Strategy.
Attendance
Fee:
$275.00 plus $50.00 per telephone line used.
About Bruce Lynn
Bruce
has acquired over 20 years of corporate and banking experience
in all aspects of treasury and financial management by successfully
tackling major assignments in such areas as treasury operations,
cash management, strategic planning, credit, systems enhancements
as well as operating and capital budgets.
He
has an Industrial Engineering degree from Lehigh University,
a MBA in Finance from the Stern School of Business and is
certified as a Cash Manager (CCM) by the Treasury Management
Association.
Bruce
has been a contributor to the Treasury Management Association's
TMA Journal and has made numerous presentation's to the TMA's
regional associations as well as presentations to the National
Association of Corporate Treasurers (NACT)
Prior
to starting The Financial Executives Consulting Group, he
was a managing director of Greenwich Treasury Advisors, a
treasury and risk management consulting firm. Also, he was
a Vice President of Bankers Trust and Director of Cash Management
for Ogden Corporation. During his many assignments he has
worked in countries throughout Asia, Africa and Europe and
with all levels of management up to and including the CEO
level.
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