Professional Course

Effective Risk Management Oversight for Board Members & Executives

Euromoney Learning, In London
3 days
3,037 GBP
Next course start
Inquire for more information See details
3 days
3,037 GBP
Next course start
Inquire for more information See details
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Course description

Effective Risk Management Oversight for Board Members & Executives

The purpose of this course is to help participants understand how to effectively execute duties as members of a risk management oversight apparatus, whether at the supervisory-, board- or management-level. In particular, we focus on defining risk and risk management in the modern context, which inevitably places risk management within the strategy-setting and strategic execution realm, based upon ensuring performance objectives are being met, as opposed to its more traditional, notion as a remedial, loss management undertaking. This gives rise to introducing an Effective Risk Oversight (ERO) as involving two major transformations. First, the risk oversight apparatus should become progressive and strategic, with the aim of enhancing the organization's performance through better risk management. Second, the apparatus should introduce and take ownership of a modern, Enterprise Risk Management (ERM) framework, where a risk executive (i.e., the Chief Risk Officer) is placed as its custodian. Importantly, risk oversight members and senior management will ultimately rely upon the CRO as a forward-looking and strategic navigator for the organization; who coordinates risk ownership, acts to enhance and strengthen risk culture and who acts as a key liaison between the executive management and the board, as well as outside stakeholders.

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  • Classroom
  • London

Who should attend?

Who should attend:

Executive and non-executive board members of major organizations. CEOs and senior executives, including Chief Risk Officers and CFOs.

Training content

Day 1

  • Overview
  • Effective Risk Oversight (ERO) Components
  • Key takeaways from the course
  • Links between ERO and Enterprise Risk Management (ERM)
  • What is Risk?
  • Dynamic, two-sided conceptions of risk
  • Upside Risk
  • Downside risk
  • Exploiting risk
  • Why exploit risk?
  • Why we make bad risk decisions
  • How human beings perceive risk
  • The Psychology of Risk
  • How we exploit risk
  • The information advantage
  • The speed advantage
  • Experience and Knowledge advantage
  • The Resource advantage
  • What is ERM?
  • Definitions: COSO, CAS
  • Takeaways from the definitions
  • Common and important objectives in ERM
  • Distinguishing ERM from Traditional Risk Management
  • Traditional Risk Management Definitions (e.g., ISO 31000)
  • Problems with the traditional definition
  • Sour implications of the traditional definition
  • Effective Risk Oversight under ERM
  • How ERM Achieves More Effective Risk Management and Oversight
  • Characteristics of ERM
  • Defining Risk ad Dynamic and Forward-looking
  • Forecasting and management of strategically-linked, enterprise-wide, risks

Day 2

  • Redefining the role of the Chief Risk Officer (CRO)
  • Seeing the CRO as Navigator with responsibilities:
  • Make the risk function strategic
  • Make the risk function forward-looking
  • Make the scope of risk analysis comprehensive
  • Alignment of the Risk Function with Business Strategy
  • Role of the CRO
  • Collaborative management of Risk with the Business
  • Role of the CRO
  • How Risk Adds Value
  • Overview of ERM Workings
  • CRO involvement in strategy-setting
  • Risk function assessment and analysis of the spectrum of risks
  • Forging of a risk management strategy with the business
  • Communication of the risk strategy to the non-executive Board
  • Setting of the Risk Appetite by the non-executive Board
  • Overseeing the Risk Appetite by the Board
  • Examples
  • Oversight Responsibilities of the non-executive Board
  • Board's Role in Ensuring Strategic Success
  • In class Exercise and Homework

Day 3

  • Discussion of Homework
  • Can you answer key oversight questions about your organization?
  • Developing a More Effective, Progressive"""" Board
  • Transitioning: From Ceremonial to Liberated to Progressive Board activity
  • Insisting on more timely awareness of risk exposure
  • Advising on risk-related limits and the appetite
  • Ensuring management follow-up on risk-related issues
  • Advising on action plans
  • Monitoring management of risks within appetite
  • Monitoring compliance
  • Examples
  • The CRO's Role in the Transition
  • Establishing and Embedding the ERM Conceptual Framework
  • Operationalizing the Framework
  • Tools and Structures needed
  • Board Oversight tools and Structures
  • Board Risk Committee
  • Board Charters supportive of Risk Oversight
  • Enterprise-wide, management-level risk function, supported by the board
  • Reporting mechanisms and structure that ensures independence
  • Asking the Right Questions
  • How Board Member Questions can make the difference in ERO
  • What is the risk?
  • Who owns it and how does it relate to our business strategy?
  • How do we measure and forecast risk exposure?
  • What is our current and anticipated exposure?
  • What planning surrounds this profile?
  • What is the risk management strategy?
  • What are we missing?
  • What are the remaining challenges?
  • Concluding Remarks and Discussion

Certification / Credits

Course Objectives: Participants will learn

  • The scope and duties of an effective risk oversight (ERO) apparatus
  • How an oversight apparatus (and governance body, in general) can transition from ceremonial to progressive in terms of its character and effectiveness
  • The roles and structures (e.g., committees, charters, agendum, etc.) involved in creating or enhancing a risk oversight apparatus, such as a Board Risk Committee
  • Typical challenges associated with new oversight committees and their members, such as an ignorance of how risk materializes for a given organization, stressed responses, regulatory relationships, etc.
  • Examples using prevailing regulatory themes in finance, such as Basel III, CRDIV, MiFID, etc.
  • The modern concept of risk, specifically in relation to Enterprise Risk Management, and its role within strategy setting and strategic execution
  • The role of the CRO, oversight committee members, executive management and stakeholders in risk oversight
  • Best-practice in risk governance and related structures
  • How ERO can be instrumental in enhancing value and supporting the achievement of strategic objectives
  • Challenges to risk oversight, such as weak risk governance and weak risk culture and how to overcome them

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At Euromoney Learning, we understand that learning doesn’t start and end when you leave the classroom. We know that the financial markets never stand still, and that technology has both simplified and added complexity at a break-neck pace. That’s why...

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