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OP-101Operational riskFoundationFree

Operational Risk Fundamentals

The only risk you can neither hedge nor diversify

Operational risk has neither counterparty nor market: it transfers only at the margin and is managed through understanding. This course sets out the definition, the taxonomy, the three lines of defence and the full toolkit, showing at each step how to connect measurement to a decision.

Learning objectives

  • Define operational risk without conflating it with compliance risk
  • Build a usable taxonomy
  • Position the roles of the three lines of defence
  • Choose the tool suited to the question asked

Intended audience

  • Risk analysts
  • Permanent control
  • Operational managers
  • Internal audit

Prerequisites

  • None

Detailed curriculum

Module 1

Define and classify

A definition that holds, a taxonomy that works, and the three lines of defence.

Module 2

Connecting risk to decision

Appetite, limit cascade, and reporting that produces decisions.