Risk

Operational Risk and Stress Testing

Operational Risk Categories, Basel Definitions, and Stress Test Design

4 CPD credits on completion
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Certificate on completion
Downloadable resources
Self-paced learning

About This Course

Course Information

This course covers Operational Risk Categories, Key Risk Indicators, Building Scenarios and Role of Management & Audit.

Certificate on Completion

This course is made up of videos, questions and additional reading materials and accounts for 4 units of CPD. One unit is the equivalent of one hour of learning. A certificate will be issued once you have completed all 4 units.

Course Sections

This course is made up of the following sections:

  • Operational Risk Categories (video)
  • Key Risk Indicators (video)
  • Operational Risk (quiz)
  • Building Scenarios (video)
  • Role of Management and Audit (video)
  • Stress Testing (quiz)
  • Additional reading materials

What You Will Learn

  • Define operational risk using the Basel Committee's 2011 definition and explain how it differs from market and credit risk
  • Identify the seven Basel categories of operational risk, from internal fraud to business disruption
  • Describe how stress tests are designed using both historical scenarios and hypothetical shocks to risk variables
  • Distinguish between routine stress testing (monthly or quarterly) and ad-hoc stress tests for emerging risks
  • Explain the role of stress testing alongside VaR and expected shortfall in presenting an enterprise-wide risk view
  • Assess the challenges of selecting time horizons and building scenarios that avoid the assumption that the future will repeat the past

Who This Course Is For

  • Risk professionals responsible for operational risk identification, measurement, or reporting
  • Compliance and audit professionals in financial institutions who need to understand stress testing frameworks
  • Finance professionals seeking to broaden their knowledge of non-market, non-credit risk categories

Prerequisites

  • General awareness of how financial institutions manage risk across different categories
  • No prior knowledge of operational risk frameworks is required; the course builds from definitions

Frequently Asked Questions

Course Details

CPD Credits4
CertificateYes

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CPD certificate on completion
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Operational Risk and Stress Testing | CPD | Learnsignal