Operational Risk Management | US and UK Markets

This course is designed to equip learners with a solid understanding of operational risk in financial institutions, with a particular focus on regulatory environments in the United States and United Kingdom. Through a structured exploration of risk fundamentals, process frameworks, and capital assessment techniques, learners will progressively identify, explain, analyze, and evaluate operational risk across various business contexts. Beginning with foundational concepts, learners will explore how operational risk differs from other types of financial risk and understand its sources — including system failures, human error, and external events. The course then delves into practical methodologies such as the Risk and Control Self Assessment (RCSA), the Basic Indicator Approach (BIA), and the Standardized Approach (SA), highlighting their role in quantifying and mitigating risk. Finally, the course advances to complex modeling techniques like the Advanced Measurement Approach (AMA), categorization of real-world loss events, and the value of internal self-assessment tools in strengthening organizational resilience. Each module combines regulatory theory with applied examples and assessment tools, enabling learners to build both conceptual understanding and practical insight. By the end of this course, participants will be able to differentiate between risk approaches, evaluate risk control mechanisms, and apply operational risk frameworks within regulated financial environments.