Operational Risk in Treasury Functions Training Course

Introduction

This intensive 5-day training course provides a comprehensive and practical exploration of operational risk specifically within treasury functions. In the highly dynamic and interconnected world of treasury, operational breakdowns, errors, and fraudulent activities can lead to significant financial losses, reputational damage, and regulatory penalties. This program will equip participants with cutting-edge methodologies to identify, assess, measure, monitor, and mitigate operational risks across the full spectrum of treasury activities, including cash management, funding, investments, and foreign exchange. Attendees will gain a robust understanding of how to build resilient operational frameworks, ensuring the integrity and efficiency of critical treasury operations.

The course goes beyond theoretical concepts, focusing on real-world applications, practical tools, and the latest regulatory expectations impacting operational risk management in treasury. Through interactive case studies, hands-on exercises, and discussions of industry incidents and best practices, participants will learn to implement robust control environments, conduct root cause analysis, develop key risk indicators (KRIs), and integrate operational risk into overall enterprise risk management. Whether you are a treasury professional, risk manager, internal auditor, or compliance officer, this program offers an unparalleled opportunity to master the essential skills for safeguarding treasury operations against a wide range of non-financial risks and enhancing organizational resilience.

Duration: 5 days

Target Audience:

  • Treasury Managers and Staff
  • Operational Risk Managers
  • Internal Auditors
  • Compliance Officers
  • Finance and Accounting Professionals involved in Treasury
  • Heads of Middle and Back Office Operations
  • IT Professionals supporting Treasury Systems
  • Regulatory Professionals

Objectives:

  • To provide a comprehensive understanding of operational risk concepts and their specific manifestations in treasury.
  • To equip participants with the skills to identify, assess, and measure operational risks in treasury processes.
  • To understand the importance of a robust control environment and its role in mitigating operational risk.
  • To develop proficiency in designing and implementing effective operational risk management frameworks for treasury.
  • To explore regulatory expectations and best practices in operational risk reporting and governance.

Course Modules:

Introduction

  • Defining operational risk: types, sources, and impact.
  • The unique operational risk landscape of treasury functions.
  • Case studies of significant operational risk failures in treasury.
  • Regulatory focus on operational resilience and risk management in financial services.
  • Overview of the course structure and key learning objectives.

Operational Risk Identification and Assessment

  • Risk and Control Self-Assessment (RCSA) methodologies for treasury processes.
  • Process mapping and flow analysis to identify control gaps.
  • Incident and loss data collection, analysis, and reporting.
  • Scenario analysis for high-impact, low-frequency operational events.
  • Root cause analysis techniques for operational failures.

Operational Risk Measurement and Monitoring

  • Key Risk Indicators (KRIs) for treasury operations.
  • Developing thresholds and trigger points for KRIs.
  • Dashboards and reporting for operational risk in treasury.
  • Introduction to quantitative modeling of operational risk (e.g., Loss Distribution Approach).
  • Backtesting and validating operational risk models.

Control Environment and Mitigation Strategies

  • Designing effective internal controls for treasury activities (e.g., segregation of duties, reconciliations).
  • Technology controls: cybersecurity, system access, data integrity.
  • Business Continuity Planning (BCP) and Disaster Recovery (DR) for treasury.
  • Vendor risk management for outsourced treasury functions.
  • Fraud prevention and detection in treasury operations.

Operational Risk in Specific Treasury Activities

  • Cash Management: payment processing errors, reconciliation breaks, cyber fraud.
  • Funding and Liquidity Management: settlement failures, collateral management errors.
  • Investment Operations: trade processing errors, valuation discrepancies, data integrity.
  • Foreign Exchange (FX) Operations: confirmation errors, settlement risk, rogue trading.
  • Debt and Capital Markets Operations: issuance errors, covenant breaches.

Technology and Cyber Risk in Treasury

  • Understanding the IT infrastructure supporting treasury.
  • Cybersecurity threats specific to treasury systems and data.
  • Data privacy and protection regulations (e.g., GDPR, local equivalents).
  • Cloud computing risks and vendor management for treasury technology.
  • Best practices for securing treasury systems and data.

Regulatory Landscape and Compliance

  • Basel Accords (Basel II, Basel III) and operational risk capital requirements.
  • Impact of MiFID II, Dodd-Frank, and other regulations on treasury operations.
  • AML/CTF (Anti-Money Laundering/Counter-Terrorist Financing) compliance in treasury.
  • Compliance with payment system regulations and standards.
  • The role of internal audit in assessing operational risk in treasury.

Operational Resilience and Future Trends

  • Building an operationally resilient treasury function.
  • Integrating operational risk into Enterprise Risk Management (ERM).
  • The role of automation, AI, and blockchain in reducing operational risk.
  • Managing human error and fostering a strong risk culture.
  • Emerging operational risks in treasury (e.g., new payment methods, geopolitical events).

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport pick up and accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

 

Operational Risk In Treasury Functions Training Course in Grenada
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