Operational Risk Training Seminar

Demystifying Key Issues & Concepts

A Comprehensive Two-Day Interactive Workshop

Facilitated by Ali Samad-Khan

March 30 - 31, 2006

Washington, D.C.

Business News
Americas

Media Sponsors Presented By

Dear Risk Management Professional,

• Why is there such little consensus among leading practitioners on the right approach to managing
operational risk? And where there is consensus has the industry converged to the right standards?
• Have you recently attended a major operational risk conference only to learn that many experts have
strong opinions but few have clear answers?
• Do you want to learn what the core issues in operational risk management are and how to address them?

Before one can manage operational risk one needs to understand the fundamental issues. To help demystify
the key issues and concepts the Global Institute for Management (GIM) is pleased to bring you a comprehensive
two-day workshop on the True Fundamentals of Operational Risk Management on March 30-31 in Washington, D.C.
This interactive workshop will be led by Ali Samad-Khan, President of OpRisk Advisory and perhaps the world’s
foremost authority on operational risk management. Mr. Samad-Khan will share his knowledge on the full range of
operational risk management and measurement issues – knowledge gained through nine years of internal research
and practical experience, working with dozens of leading banks, insurance companies and national and international
regulators around the world.

By attending this workshop, you will gain a solid understanding of the real issues in operational risk management, as
well as what works, what doesn’t work and how it all fits together. Whether you are a seasoned risk professional or
just getting started in this field, this training event will be an invaluable experience. Mr. Samad-Khan’s expertise in
this field is unique and unparalleled in the industry. The comprehensive knowledge you will gain during this workshop
is not available in any books or other reference materials or at any other conferences on operational risk.

Register now by calling (213) 291-8655 or by visiting www.GIManagement.com

We look forward to meeting you in Washington, D.C.

Best regards,

Understand the Most Important

Who Should Attend?
Fundamentals of Operational Risk

• Defining and Classifying Risk Risk management professionals, regulators

• Risk Assessment and all those interested in learning about
• Control Assessment Operational Risk from industries such as:
• Integrated Framework
• Expected Loss • Banking
• Unexpected Loss • Financial Services
• Key Risk Indicators & Predictive Analysis • Energy
• Scenario Analysis • Insurance
• Value at Risk (VaR) Modeling • Government / Regulatory
• VaR Calculation
And all professionals representing other
industrial sectors interested in learning
about Operational Risk

REGISTER TODAY CALL (213) 291-8655 | WWW.GIMANAGEMENT.COM

 DAY 1
THURSDAY, MARCH 30, 2006
8:00 Registration & Continental Breakfast
8:30 Welcome & Introductions
8:45 The History & Evolution of Modern
Operational Risk Management
What exactly is modern operational risk management
main
and what is its value proposition? In this introductory
session you will learn how operational risk management
evolved from an unstructured set of processes and
procedures into a modern science; the history of false
starts, missteps and wrong turns, and how these issues
were resolved and the way forward. The discussion
will also cover the evolution of risk regulation in
the banking industry and the steps leading to the
development of the Basel II Capital Accord.
9:45 What is Operational Risk?
Is risk a type of loss, a measure of damage, or
something entirely different? Is risk exclusively a bad
thing? Before you can manage operational risk you
need to understand what risk really means and how use
of this term in casual conversation differs significantly
from its formal usage. In this introductory session you
will learn the true nature and meaning of the word risk,
the fundamental characteristics of operational risk as
well as the differences in definitional standards used
by the accounting and risk management professions.
10:45 Morning Break
11:00 Defining & Classifying Operational Risks
A structured approach to operational risk management
requires a sound classification framework. But this
is a significant challenge because operational risks
span causes (lack of supervision), events (fraud) and
consequences (lawsuits). How can one incorporate
all these elements into a single comprehensive
definition and how will doing so facilitate better
managerial decision making? In this session you will
learn the fundamental issues surrounding loss data
classification, the evolution of thinking in this field
over the past decade, the different approaches used
as well as which methods best support an advanced
measurement and management framework.
12:00 Networking Luncheon
REGISTER TODAY CALL (213) 291-8655 | WWW.GIMANAGEMENT.COM
1:00 Integrated Risk & Control
Management Framework
In order to develop a holistic, integrated operational risk
measurement and management framework one must
establish a common risk and control management
structure. This allows one to track and monitor the level
of risk in each business and the corresponding control
quality. In this session you will learn how to establish
a framework which will enable your organization to
identify where its businesses are well protected and
where there is room for improvement.
2:00 Understanding Risk Assessment Issues
Organizations have been conducting risk assessments
for decades, but are the traditional approaches valid?
The COSO standard in the USA, for example, endorses
an approach based on likelihood and impact analysis,
which has serious flaws. There are other popular
approaches, some of which are based on historical loss
data and scenario analysis, which also raise concerns.
In this session you will learn the pros and cons of the
various approaches and how to apply advanced risk
assessment techniques in your organization.
3:00 Afternoon Break
3:15 Understanding Control Assessment Issues
After identifying and assessing its major risks an
organization needs to assess the quality of its
corresponding internal controls to determine whether
it is over-controlled, under-controlled or adequately
controlled in the context of its risk appetite and risk
tolerance standards. But assessing controls is a very
subjective process. How can one make this process
more objective so that the results are meaningful
and can be turned into metrics to be monitored on
a continuous basis? In this session you will gain an
understanding of the issues one has to address in
developing a viable control assessment program.
4:15 Daily Summary
Conclusions
Question and Answer
4:45 Adjourn
 DAY 2
FRIDAY, MARCH 31, 2006
8:00 Continental Breakfast
8:30 Review of Operational Risk Frameworks
9:00 What are Expected & Unexpected Loss?
There has been a lot of discussion in the industry
about how to define and calculate expected loss and
main
unexpected loss. And there are many opinions on this
subject. There are some who still believe that expected
losses are the smaller losses and unexpected losses
are the larger losses. Clearly, these definitions are not
very sensible, because it would be very difficult to
determine the point at which a loss becomes large
enough to move from the expected to the unexpected
realm. In this session you will learn what these terms
mean and why they are important from a pricing and
budgeting standpoint.
9:45 Understanding Risk Indicators &
Predictive Analysis
Many believe that identifying and monitoring predictive
risk indicators is a prerequisite to proactively managing
operational risk. But those who are familiar with such
information know that legitimate risk indicators are few
and far between. In this session you will learn how to
identify and validate such indicators and how to transform
raw and derivative indicators into metrics that support
the effective management of operational risk.
10:45 Morning Break
11:00 Understanding Loss Data Issues
Historical loss data is the only objective source of
information on operational risks, but internal loss
data appears insufficient and external loss data
appears irrelevant. In this session you will learn
what sorts of loss data exist (internal, external public,
external consortium), what are the advantages and
disadvantages of using the different types of data,
how to establish a program for collecting internal loss
data, whether to acquire external loss data and which
vendors have the best products, what are the many
uses and misuses of historical loss data, how to scale
external loss data to the size of your organization and
many other valuable lessons.
12:00 Networking Luncheon
REGISTER TODAY CALL (213) 291-8655 | WWW.GIMANAGEMENT.COM
1:00 Value at Risk (VaR) Modeling
Value at risk can be calculated using an actuarial
approach. This requires that loss data be “fitted” to
appropriate frequency and severity distributions. But
how can this be achieved, when the data are subject
to numerous biases? In particular all loss data are
collected above a particular threshold level, which
makes it difficult to calculate parameters for modeling.
In addition, external data must be adjusted for size,
controls and data capture biases. In this session you
will learn about some of the most advanced methods
for addressing the technical challenges in operational
risk modeling including theoretically valid methods to
combine internal and external data.
2:00 VaR Calculation, Correlation & Insurance
Monte Carlo simulation is a viable means of calculating
operational value at risk, but there are many theoretical
and mechanical issues to consider. They include:
dependencies (correlation) and risk transfer (insurance).
Correlations may manifest themselves through frequency
(number of events), severity (size of loss) or the aggregate
level. Insurance can be used as part of a risk transfer
strategy and the impact of insurance can be calculated
through the simulation process. In this session you will
learn the latest techniques for VaR calculation.
3:00 Afternoon Break
3:15 Understanding Scenario Analysis &
Management Applications
Scenario analysis can help organizations identify
major risks and avoid potential losses; it can also help
managers develop contingency plans for major events
that threaten the organization’s viability. Lastly, it is easy
to be overwhelmed by the huge amount of data that
flow out of an operational risk management program.
These data must be transformed from “noise” into useful
information to help managers make more educated
decisions about their risk mitigation strategies based
on cost-befefit analysis. In this session you will learn
the practical uses of such information.
4:15 Daily Summary
Conclusions
Question and Answer
4:45 Closing Comments and Adjourn Training
HOTEL AND SPONSOR

Operational Risk Training Seminar 2006 will be hosted at the Wyndham Washington D.C. Hotel. A
limited number of rooms have been reserved at the discounted rate of $179 per night. Please contact
the hotel to make reservations at (202) 429-1700 by March 2, 2006. Take advantage of the discount
by asking for the Global Institute for Management conference rate.

1400 M Street, NW | Washington, District of Columbia 20005

Sponsored by

Business News Business News Americas is the leading source of business intelligence about Latin America
Americas and the Caribbean. Its high level of specialization and award-winning editorial style provides
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Presented by
The Global Institute for Management (GIM) is the preeminent provider of educational services
specifically tailored to enable organizations to overcome the challenges that prevent the
achievement of optimal performance. Through our conferences, expos and research
products, organizational leaders learn from a distinguished faculty of leading practitioners
and subject-matter experts.

OpRisk Advisory is the world’s leading operational risk management consulting firm. The firm
provides the full range of services to help its clients develop highly efficient, cost-effective
operational risk management programs that meet or exceed industry best practices and
satisfy the highest level of Basel II compliance. OpRisk Advisory is the only operational risk
management consulting firm setting the standard for best practices in the industry. The firm
has advised many of the world’s largest banks, insurance companies, energy companies
and regulators on the full range of operational risk measurement and management issues.
Leveraging their vast experience, OpRisk Advisory’s expert consultants are able to share
many valuable lessons - lessons learned the hard way - about what works, what doesn’t work
and how it all fits together.

Working out of five offices in Europe, Asia, and North America, OpRisk Advisory is positioned
to support clients in every region of the world.

Tuition
Register before February 17, 2006 and receive a $200 discount off the normal price of $1295.
Special Group Rates
We provide special discounts to groups of two or more. For more information, please contact us at info@gimanagement.com or
call us at (213) 291 - 8655.
Exhibition and Sponsorship Information
To find out how your organization can exhibit at Operational Risk Training Seminar 2006, please contact us at (213) 291 - 8655.

Administrative Note: A fee of $195 will be charged for cancellations received less than three weeks prior to the date of the event.
Prior to three weeks before the event a $50 fee will be assessed for any cancellation received. As speakers and conference topics
are confirmed up to six months in advance, some speaker or topic changes may occur. The Global Institute for Management does
not assume responsibility for speaker or faculty changes, but will work to ensure that a comparable individual is found to participate
in the program.

REGISTER TODAY CALL (213) 291-8655 | WWW.GIMANAGEMENT.COM

Operational Risk Training Seminar
Demystifying Key Issues & Concepts

A Comprehensive Two-Day Interactive Workshop

Facilitated by Ali Samad-Khan

March 30 - 31, 2006

Washington, D.C.

Global Institute for Management

13502 Whittier Boulevard, Suite H, PMB 201
Whittier, CA 90605

Registration Form for Operational Risk Training Seminar

Call (213) 291-8655, fax this form (213) 291-1667, or visit www.GIManagement.com

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