IRM Regional Interest Group 22 January 2021

Bill Stirling Contact: [email protected] Topics for today

Agenda ❑ Institute of Operational Risk, as part of the IRM ❑ Members, Committee and the wider risk community ❑ Resources and events in 2021 ❑ Certificate in Operational Risk Management ❑ Hot topics in Operational Risk Institute of Operational Risk, as part of the IRM

❑ Operational Risk is often defined as:

The risk of loss resulting from inadequate or failed internal processes, people and systems or from external events

❑ The IoR was founded in 2004 and is the only professional institute for the discipline of operational risk. The aim of the IoR is: ‘to promote the development and practice of operational risk management through the ongoing development of its members and by engaging with industry participants to shape industry in the area of operational risk management.’

❑ The IoR joined the IRM Group in 2019 and progress is being made to improve the research focus and resources available to members

❑ The Chapters and the Special Interest Group are run by members on a voluntary basis Members, Committee and the community

IoR Membership Financial Services Community IoR Scottish Chapter Committee ❑ Bill Stirling – Chair ❑ IoR has c.750 members, majority in Financial Services in Scotland: the UK but with a growing presence ❑ Employs over 160,000 people Contractor @ Refinitiv worldwide across 73 countries directly and indirectly ❑ Allan Barr ❑ Membership levels are similar to ❑ Generates around £8 billion for the IRM membership levels, however Scottish economy, more than 8% of both memberships confer the same Scottish onshore economic activity ❑ Alan Greig benefits and access to events ❑ Manages over £800 billion of funds NatWest Group

❑ Many of the Scottish members work ❑ Accounts for 24% of all UK ❑ Brian Rowlands in financial services where employment in life assurance, and Contractor @ ReAssure/Phoenix operational risk management is 13% of all banking employment essential for safe business ❑ Sector includes Banking; Fund ❑ Derek Frank operations and is also a regulatory Management; Insurance, Life FNZ UK requirement Assurance and Pensions; Asset Servicing and Professional Services ❑ Caroline Ramsay all supported by many key ATOS BPO outsource service providers ❑ Christoph Woell ATOS BPO Resources and events in 2021

Sound Practice Guides Access to all IRM resources and events Webinars In conjunction with Professor Simon The Institute regularly hosts Ashby and Sword GRC, the 9 Sound webinars on operational risk Practice Guides have recently been topics. Members can view the refreshed and provide guidance that is both focused on the management of recordings of past webinars operational risk and practical in its from the IoR Website application The Team in England & Wales has been particularly active recently and Scotland plans to host several webinars during 2021

All webinars will be promoted to all the IoR membership worldwide, and to IRM members who have registered for the IRM Operational Risk Special Interest Group Professional Qualification Journeys for the IOR and IRM

Experience in Risk (years) O to 2 years 2 years to 8 years 8 years plus

Institute of Operational Risk (IOR) 8 years+ relevant OR professional journey, can start as either a: StudentStudent Pass CORM 1 year+ PQE experience and 30 hours CIOR PIOR of CPD FIOR 1. Student, if new to Operational Risk and enrolled into the CORM SIRM SIRM • A student will be classified as a CIOR member when they pass the CORM and become a certificate 2 years+ Associate relevant OR holder. experience 2. An Associate if new to Operational Risk but not enrolled into the CORM 3. A Professional Member if more than 2 Starting out in career and A Professional Member requires demonstration of at least 2 years A Fellow is an honorary award for professional members who have at least 8 A pass of the CORM years relevant experience in working within either relevant and practical experience directly in Operational Risk years experience in an Operational Risk or related Risk role (CRO, Enterprise and building Operational Risk, a Risk related Management and currently working in an Operational Risk position Risk) and have held the PIOR designation for at least two years. An Operational Risk relevant Risk role or interested in learning or Risk related role (i.e. audit, compliance). If a CORM holder then 1 application demonstrating the attributes to be nominated to a Fellow is experience about Operational Risk years + PQE required to move to a professional member required, including 30 hours of CPD in the last 12 months

Post-Nominals allowed None CIOR PIOR and SIRM (additional technical specialist membership of IRM) FIOR and SIRM (additional technical specialist membership of IRM)

Institute of Risk Management (IRM) professional journey can start as either a:

1. Student, if new to Risk Management Pass Held Certificate for 2 Pass IRM Grad International 3 year+ experience years and 8 years Student Certificate CMIRM CFIRM and enrolled into the IRM Certificate Cert Diploma IRM relevant risk experience 2. An Affiliate if interested in risk management but not focused on professional qualifications Student enrols for IRM Certificate SIRM 3. A Technical Specialist, if 5 years in Risk Management / Financial Services Risk Management 3 years of relevant experience and specialist risk related experience and 30 hours Enrol for the On completion of 5 years CPD in the last 12 months A Certified Fellow must have held the qualifications International Modules 1 & 2 the experience and required to move to CMIRM designation for at least 2 years Diploma in Risk 4. A Certified Member if the Senior individual becomes technical Certified. and have 8 years practical risk Management and a Certificate specialist risk [N.. if a GradIRM already management experience as well as 30 Executive Route is followed, which Affiliate complete modules Member of the IRM related has 3 years experience hours CPD in the last 12 months 3,4,5 & 6 requires 8 years+ risk management qualification they can apply to become experience in a senior leadership (MSc, H&S Risk) Certified immediately] position Post-Nominals allowed None IRMCert GradIRM SIRM CMIRM CFIRM Certificate in Operational Risk Management Benefits of the Certificate in Operational Risk Management

Individuals Firms

✓ Learn operational risk concepts using theory and ✓ Ensure staff follow industry ‘best practices’ and practical examples understand regulatory requirements in Operational Risk ✓ Demonstrate commitment and evidence professional ✓ Promote qualification in the discipline and ability for knowledge staff to demonstrate commitment

✓ Certified Member to Professional Member 1-year PQE, ✓ Training is accredited and provides an incentive for or 2 years without Certificate employees to obtain a wider view of Operational Risk ✓ Ability to offer CORM to many risk focused ✓ Students can take the online exam after a minimum of employees: three months of study ✓ Line 2 Operational Risk Team ✓ CORM students also get a year’s Associate level ✓ Line 1 Operational Risk Teams membership of the Institute of Operational Risk ✓ Other interested specialists (Compliance, Financial Crime, etc) . Hot topics in Operational Risk

o Sector Concentration Supplier Risks Risk o Increasing cloud o Management Outsourcing dependencies Oversight o Rapid digitisation o Contingency o Cyber threats Planning increasing in scale and complexity Cyber Operational Technology Resilience Digital

o Regulatory initiative following o Management and multiple high- customers profile issues demanding rapid o Resilience will be deployment of underpinned by Culture & new technology good Op Risk o Increased management Pace of Change Regulatory scrutiny