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.
Assessment method
Self-check questions throughout the lessons, with no recorded score. Where an associated track leads to a certification, that certification has a separate exam.
Document issued
This course does not, on its own, lead to a certificate. A track certification, where one exists, is issued after its exam is passed.
Continuity & Resilience editorial team