New Generation Operational Risk 2017

www.cefpro.com/oprisk

Andrew Sheen Head of Operational Risk

Regulatory Advisory Credit Suisse

Peter Mitic Head of Advanced

Analytics UK Santander UK

Campbell Davidson Head of Operational Risk Management Framework

RBS

Jenny Birdi Global Head of Three

Lines of Defense Programme HSBC

Michael Grimwade ED, Operational Risk

Management MUFG Securities

Philip White Executive Director,

Framework, Conduct Risk and Capital

UBS Investment Bank

Laurence Bogni Bartholme Head of International Risk

Oversight for EMEA Wells Fargo

Will Martyn Head of Operational Risk

Framework & Policy HSBC

CPD ACCREDITATION: ENDORSED BYCO-SPONSORS:

14-15 MARCH 2017 | MONUMENT, 8 EASTCHEAP, LONDON

Aligning Operational Risk Frameworks and Controls for a Broader View of the Risk Function and Using to Drive Business Decisions

NEW GENERATION OPERATIONAL RISK: EUROPE

REGULATORY AGENDA An overview of the regulatory landscape across operational risk from the PRA

CONDUCT RISK Reviewing overlaps with operational risk and fitting conduct risk into a broader risk framework – From the FCA

LINES OF DEFENSE A review of the roles of each line of defense across large banking organisations

ERM Incorporating operational risk into a larger ERM framework and reviewing differing approaches

REPUTATION RISK A review of the link between conduct risk events and reputation implications

SCENARIO ANALYSIS Challenges, overview and uses of scenario analysis as a value adding exercise

RISK APPETITE Using risk appetite and use test for reflective results aligned with operational risk framework

VENDOR RISK Understanding supply chain and third party risks to better identify vulnerabilities

EMERGING RISKS Reviewing the evolving model risk and requirements to ensure accurate reporting of stress test outcomes

KEY TOPICS TO BE ADDRESSED:

3RD ANNUAL

#OpRisk17

NEW YEAR SPECIAL

£1099REGISTER BY 3 FEBRUARY

Mark Russell Operational Risk

Specialist PRA Bank of England

HEAR FROM MORE THAN 20 SENIOR OPERATIONAL RISK PROFESSIONALS INCLUDING:

KEYNOTE REGULATORY ADDRESSES: Tin Lau

Manager, Financial Risk & Products & Operational Risk

FCA

BWise

3RD ANNUAL NEW GENERATION OPERATIONAL RISK: EUROPE | 14-15 MARCH, 2017 | LONDON

WHY ATTEND3rd Annual New Generation Operational Risk 2017 will bring together industry professionals to provide a platform for discussion, insights and reviewing of the top priorities across the industry. Operational risk is an area that is expanding in focus with many institutions deploying large resources and focusing attention on better management, understanding and most importantly

adding value to the enterprise to overcome the direct and indirect risks associated. The Center for Financial Professionals looks to provide high-level insight on critical operational risk areas through interactive panel discussions, thought provoking presentations, interactive Q&A’s, luncheon roundtables and extensive networking opportunities to further progress the discussions.

SPONSORSHIP & EXHIBITION Advance your branding, awareness, industry expertise, thought-leadership and lead-generation at 3rd Annual New Generation Operational Risk: Europe.Sponsorship and exhibition with the Center for Financial Professionals offers unique networking, brand recognition and thought- leadership deliverance opportunities with senior risk professionals from around the world. Whether you want full branding across the event or simply a well-positioned exhibition stand, our business development team will tailor the right package for you. We do everything we can to help you get your marketing message across and also to benchmark the return on your investment.

MEDIA PARTNERS

Call us on +44 (0) 20 7164 6582 or email [email protected] to find out more

#OpRisk17

Up to 15.5 CPD Credits

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CO-SPONSORS Nasdaq BWise is a global GRC technology leader.

We help organizations, both big and small, around the globe, embed, sustain, and streamline their GRC and integrated risk management activities. The BWise software application is the cornerstone of Nasdaq’s GRC technology portfolio. It offers a wide range of leading GRC functional capabilities for risk management, internal audit, internal control, information security and regulatory compliance.

Having implemented some of the largest GRC projects in various industries around the globe in various industries means that Nasdaq BWise will truly be able to leverage its global resources to ensure a successful implementation by bringing a blend of technical and industry experience, a mature project governance methodology, and a dedication to effectively and efficiently transfer knowledge for long-term success.

About Nasdaq - Nasdaq is recognized around the globe as a diversified worldwide technology, trading and information services provider to the capital markets, with more than 3,500 colleagues serving businesses and investors from over 50 offices in 26 countries across six continents – and in every capital market.

OpenSky is an independent consulting company and we provide solutions that help enterprises enable

and secure the digital enterprise. Using a proven engagement methodology, we are able to reduce the cost and risk of becoming a digital enterprise. We provide solutions in the areas of Mastering Risk, Cloud Enabled Infrastructure, and Advanced Cyber Defenses. Our consultants average 10 plus years of enterprise experience and use a collaborative style to maximize knowledge transfer to our customers.

Today’s global, fully connected and rapidly changing business environment requires thinking about risk in new ways. OXIAL’s leading-edge Governance Risk and Compliance (GRC) solutions take an innovative and unified approach to allow you to maximize strategic

and operational performance, cost-effectively manage regulations and policies and proactively mitigate business risks.

Our solutions are entirely built to match organizations’ specific needs, with an integrated GRC approach which aligns and links all essential governance, risk, internal control, internal audit, finance and compliance elements on a single platform. OXIAL’s modular and scalable solutions are designed to address some of the greatest challenges impacting organisations that are faced with Risk Management, Internal Control, Compliance and Audit.

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performance and achieve success.

More than 30,000 customers worldwide—including nearly half the global Fortune 500—rely on RSA’s business-driven security™ strategy for cyber threat detection and response, identity and access management, online fraud prevention, and governance, risk and compliance solutions. Armed with the industry’s most powerful tools, enterprises can better focus on growth, innovation and transformation in today’s volatile business environment.

RSA Archer® empowers you to address the most critical domains of business risk and to evolve your risk management program. It features a full suite of multi-disciplinary

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Thomson Reuters provides professionals with the intelligence, technology

and human expertise they need to find trusted answers.

We enable professionals in the financial and risk, legal, tax and accounting, and media markets to make the decisions that matter most, all powered by the world’s most trusted news organization.

Whether complying with regulatory requirements or managing financial

transactions, addressing a single key risk, or working toward a holistic enterprise risk management strategy, Wolters Kluwer works with customers worldwide to help them successfully navigate regulatory complexity, optimize risk and financial performance, and manage data to support critical decisions. Wolters Kluwer provides risk management, compliance, finance and audit solutions that help financial organizations improve efficiency and effectiveness across their enterprise, with more than 30 offices in 20 countries.

ENDORSED BY Founded in 2005, ORIC International is the leading operational risk consortium for the

(re)insurance and asset management sector globally. There are currently 41 members of the consortium, with accelerating international growth. ORIC International is a not-for-profit industry body dedicated to helping its members enhance the capabilities of their operational risk functions. This industry body facilitates the anonymised and confidential exchange of operational risk intelligence between member firms, providing a diverse, high quality pool of quantitative and qualitative information on relevant operational risk exposures.

As well as providing operational risk event data, ORIC International also provides industry benchmarks, undertakes leading edge research, sets trusted standards for operational risk and provides a forum for members to exchange ideas and best practice. This comprehensive offering is designed to empower risk professionals to help their business and their Board in the identification, assessment, management/measurement, monitoring and reporting of operational risk.

BWise

3RD ANNUAL NEW GENERATION OPERATIONAL RISK: EUROPE | 14-15 MARCH, 2017 | LONDON

08.15 REGISTRATION & COFFEE

08.50 CHAIR’S OPENING REMARKS

KEYNOTE ADDRESS 09:00 An overview of the regulatory agenda for 2017Mark Russell, Operational Risk Specialist, PRA Bank of England

PANEL DISCUSSION 9.40 Managing regulatory risk in an increasingly uncertain world where the costs of failure have never been greater • Why has op risk not been a greater focus of Basel given the GFC was largely driven by operational risk failures? • What do the regulators expect from operational risk and OR managers? • Regulatory change – how to survive the continuing storm • The demise of AMA – what does it mean and what lessons are there? • Managing uncertainty post Brexit – lessons learned for risk managers • Regulatory trends: managing regulatory risk in an increasingly uncertain landscape • Operating in a zero or negative interest rate environment Andrew Sheen, Head of Operational Risk Regulatory Advisory, Credit Suisse (tbc) Jimi Hinchliffe, CEO, NJ Risk and Regulatory Consulting, Former Head of Policy, Risk & Regulatory Affairs, MUFG Mark Russell, Operational Risk Specialist, PRA Bank of England

10.30 MORNING REFRESHMENT BREAK & NETWORKING

DOUBLE SESSION 11.00 Risk frameworks - understanding roles and responsibilities of each line of defense and the role for operational risk managers • Responsibility and accountability of each line • Oversight: people, structure and reporting lines • Operational risk as a function – what is the value proposition • Skills required for effective operational risk/oversight team • Key linkages/ interactions – including with the 3rd LOD • Risk appetite/ tolerance

Philip White, ED, Head of Framework, Design & Systems, UBS Investment Bank Jenny Birdi, Global Head of Three Lines of Defense, HSBC

12.20 LUNCH BREAK & NETWORKING

PEOPLE RISK 13.20 The senior managers’ and certification regime – a year on • Has SM&CR changed the way regulated businesses work? • The evolution of people risk within Yorkshire Building Society • Understanding the impact of SM&CR on culture • Making culture change “stick” and approaches to culture measurement Natalie Saunders, Head of People Risk, Yorkshire Building Society Group

ERM DOUBLE SESSION 14.00 Structuring operational risk as a function within a broader ERM framework: Fragmented Vs. Holistic ERM approach • Aligning with financial crime, regulatory risk, compliance • Bringing risk siloes together – providing the ‘umbrella’ for centralised reporting, risk taxonomy etc. • Convergence and balance across the industry • Behavioral economics • Enterprise wide governance programme Will Martyn, Head of Operational Risk Framework & Policy, HSBC Simon Cartlidge, Head of Operational Risk Governance, Legal & General

15.20 AFTERNOON REFRESHMENT BREAK & NETWORKING

COMPLIANCE 15.50 Aligning operational risk and compliance teams for effective oversight and management • Rules based to more principles based • Considering risk management processes • Changing nature of regulatory compliance • Ownership of risk and control framework • Residual risk exposure and transparency • How to manage thematic/ cross cutting issues and risks Brian Gregory, VP, Market Management, Non-Financial Risk/GRC, EMEA, Wolters Kluwer

KRIs 16:30 Defining the key in key risk indicators: building a framework to report leading indicators • Building frameworks • Limiting metrics – they can’t all be ‘key’ • Responsibilities between lines • Continuous or dynamic based risk assessment • Trigger based approach • Practical challenges – how to ‘use’ KRIs to drive decision making • Board room to basement Bart van der Hoeven, Senior Director Solutions Consulting, Nasdaq Bwise

POLICY & FRAMEWORK PANEL DISCUSSION 17:10 Adopting policy requirements and embedding into day to day activities • What is a good policy • Monitoring compliance with policy • Policy versus WAH (What Actually Happens) • Adopting policy and embedding into day to day activities • Control monitoring • Good control approaches • Monitoring and testing • Control framework • Back to basics Will Martyn, Head of Operational Risk Framework & Policy, HSBC

18.00 CHAIR’S CLOSING REMARKS

18.10 END OF DAY ONE & DRINKS RECEPTION

AGENDA DAY ONE | 14 MARCH

#OpRisk17 www.cefpro.com/oprisk

3RD ANNUAL NEW GENERATION OPERATIONAL RISK: EUROPE | 14-15 MARCH, 2017 | LONDON

AGENDA

DAY TWO | 15 MARCH

#OpRisk17 www.cefpro.com/oprisk

08.30 REGISTRATION & COFFEE

08.50 CHAIR’S OPENING REMARKS

09.00 Reviewing how conduct and operational risk overlap and fitting conduct risk into broader risk framework Tin Lau, Management, Financial Operational Risk & Complex Products, Prudential Specialist Division, FCA

SCENARIO ANALYSIS 09.40 Utilising operational risk scenario analysis and stress testing to gain benefit to the business • Challenges • Anatomy of historical tail risks • Overview • Determining a portfolio of scenarios • Techniques: root cause analysis, delphi and judgment • Validation: individual scenarios and portfolios • Uses • Pillar 2a & b • Limit setting, insurance, product design, & targeted monitoring of key controls Michael Grimwade, Executive Director, Operational Risk Management, MUFG Securities

10.20 MORNING REFRESHMENT BREAK & NETWORKING

10.50 Reputation Risk: Reviewing the link between conduct risk events and reputation Peter Mitic, Head of Advanced Analytics, Santander UK

RISK APPETITE 11.30 Setting a risk appetite contingent with the organisation’s operational risk framework to add value • Making it real – the ‘use test’ • Level of set up required• Practical and granular vs. high level and abstract• Building, measuring and aggregating• Value added to the business• Control environment in line with appetite Campbell Davidson, Head of the Operational Risk Management Framework Programme, Royal Bank of Scotland

12.10 LUNCH BREAK & NETWORKING

PANEL DISCUSSION 13.10 Developing effective operational risk frameworks and adding value to the business and operational risk function • Identifying operational risk • Effective modeling of operational risk • Monitoring and reporting • Using tools to make informed business decisions Simon Cartlidge, Head of Operational Risk Governance, Legal & General Sean Miles, Head of Resilience and Op Risk Unit, Technology & Operations, Santander

VENDOR & THIRD PARTY RISK 14.00 Reviewing third party supply chain processes to understand and identify vulnerabilities • Understanding controls in place • Business continuity • Level of oversight rigor – increasing regulatory expectations and focus • Reputational fallout • Who is providing service: vendor outsourcing • Over extended third party and subcontractor network

14.40 AFTERNOON REFRESHMENT BREAK & NETWORKING

15.10 Assessment of operational loss data and its implications for capital modeling • Introduce a method for dealing with operational loss data • Apply to actual data • Evaluate the outcome • Assess implications for capital modelling Ruben Cohen, Operational Risk Analytics, Former Citi

PANEL DISCUSSION 15.50 Next generation operational risk • Is the death of AMA the end for OR modelling? • What lessons learned must we take from the failure of AMA? • How can operational risk managers be more influential in emerging risks? • How can operational risk managers support the leaner more flexible firm? • What are the main challenges for operational risk managers in the next year • How to tackle new/ higher priority risks that are highly specialized in nature (challenge for op risk generalists) – e.g. model risk, cyber, conduct Laurence Bogni Bartholme, Head of International Risk Oversight for EMEA, Wells Fargo Craig Ivey, Head of Operational Risk Economic Capital, RBS Richard Pike, Non Executive Director, Permanent TSB

16.50 CHAIR’S CLOSING REMARKS

17.00 END OF SUMMIT

BRING THE TEAM3rd attendee gets 50% offwhen registering at the same time

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3RD ANNUAL NEW GENERATION OPERATIONAL RISK: EUROPE | 14-15 MARCH, 2017 | LONDON

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We provide industry news on the latest changes and developments, summaries on recent regulatory requirements, and implementation challenges with key considerations. Our network of authors range from risk professionals within banking risk, financial regulation, market risk, credit risk, operational risk and treasury/balance sheet management.

Don’t forget to download the Risk Insights App today ahead of the event using your Center for Financial Professionals’ login details.So users can maximise knowledge sharing opportunities, the Risk Insights App also offers the opportunity to interact with senior risk professionals live at one of the Center for Financial Professionals’ conferences.Available on the Google Play Store and Apple Store

For more information, email us [email protected]

FEATURES AND ARTICLES INCLUDED IN THIS ISSUE:

Establishing an Effective Governance Structure to Better Account for Operational Risks Gustavo Ortega, Director and Global Head of Issue and Risk Event Management at AIG provides his insights on the key challenges defining roles of the first and second lines of defense, along with his professional views on what can operational risk silo can expect in 2016.

What is Defined as ‘Good Risk Culture’? Head of Enterprise Risk Management at Martin Currie, Neil Hutchison talks to the Center for Financial Professionals on how to measure and understand what is defined as good risk culture, challenges and pitfalls….

Challenges for a new generation of operational risk Article by Richard Pike, Non Executive Director at Permanent TSB on effectively reporting accurate and complete reports to the board

Building a CCAR compliant operational risk stress model Christiane Hoppe-Oehl at UBS gives insight on her professional experience as Head of Operational Risk and Reverse Stress Testing.

Third party risk management towards a pragmatic approachHead of Third Party Risk Management, Strategy and Framework at HSBC, Simon Lloyd-Horton, talks to the Center for Financial Professionals on how to safely outsource via a third party and to get a better understanding of the level of risk & monitoring requirements.

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30 AUTHORS FROM LEADING FINANCIAL INSTITUTIONS

6 KEY THEMES UNDER THE RISK & REGULATION SCOPE

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NEW GENERATION OPERATIONAL RISK: EUROPE