Review of the Federal Reserve’s Supervision and Regulation of Silicon Valley Bank
After completing this reading, you should be able to: Describe the events leading up to the failure of Silicon Valley Bank. Describe shortfalls and deficiencies in the Federal Reserve’s supervisory oversight of Silicon Valley Bank during the period that the…
Risk Mitigation
After completing this reading, you should be able to: Explain different ways firms address their operational risk exposures. Compare different types of internal controls and provide examples of each type of internal control. Describe control automation, internal control design, and…
Risk Measurement and Assessment
After completing this reading, you should be able to: Explain best practices for the collection of operational loss data and reporting of operational loss incidents, including regulatory expectations. Explain operational risk-assessment processes and tools, including risk control self-assessments (RCSAs), likelihood…
Risk Identification
After completing this reading, you should be able to: Compare different top-down and bottom-up approaches and tools for identifying operational risks. Describe best practices in the process of scenario analysis for operational risk. Describe and apply an operational risk…
Risk Reporting
After completing this reading, you should be able to: Identify roles and responsibilities of different organizational committees and explain how risk reports should be developed for each committee or business function. Describe components of operational risk reports and explain best…
Case Study: Model Risk and Model Validation
After completing this reading, you should be able to: Define a model and describe different ways financial institutions can become exposed to model risk. Describe the role of the model risk management function and explain best practices in the model…
Case Study: Investor Protection and Compliance Risks in Investment Activities
After completing this reading, you should be able to: Summarize important regulations designed to protect investors in financial instruments, including MiFiD, MiFiD II, and Dodd-Frank. Describe and provide lessons learned from the case studies involving violations of investor protection or…
Case Study: Third-party Risk Management
After completing this reading, you should be able to: Explain how risks related to the use of third parties can arise and describe characteristics of an effective third-party risk management framework. Describe the lessons learned from the case study involving…
Risk Governance
After completing this reading, you should be able to: Explain Basel regulatory expectations for an operational risk management framework’s governance. Describe and compare the roles of different committees and the board of directors in operational risk governance. Describe the “three…
Case Study: Financial Crime and Fraud
After completing this reading, you should be able to: Describe elements of a control framework to manage financial fraud and money laundering risk. Summarize the regulatory findings and describe the lessons learned from the USAA case study. This chapter discusses…
