PECB and Chapelle Consulting: Partners in ORM Certification

The Basel Committee on Banking Supervision (BCBS) defines operational risk as “the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events.” It is a blanket description for a multitude of challenges that demand rigorous controls and organisational resilience.   

In response, Operational Risk Management (ORM) has developed into a recognised and required discipline for financial institutions – and with good reason. Over the past 20 years, we’ve seen digital transformation on a huge scale, the growing threat from cybercrime, and a global financial crisis that has exposed critical weaknesses in the banking system. And now, of course, Covid-19 is presenting another serious operational challenge.  

Because operational risks are multiplying, and regulations have become more exacting, no organisation can afford to be complacent. Financial institutions must embed risk management in their cultures and evolve to meet new needs. They must develop appropriate risk management tools and knowledge, and create frameworks and policies to ensure both compliance and resilience. This can only be achieved with the right industry training and focus, which is where PECB and Chapelle Consulting come in. 

Strength in combination 

Because PECB provides training, examinations, and certification across a wide range of disciplines, there is a natural fit with Chapelle Consulting, whose experienced risk professionals offer advisory and training services for operational risk and enterprise risk management.

Chapelle Consulting is now a training certification partner with PECB, an accredited certification body of persons, and will deliver a training course through PECB. Entitled “Operational Risk Management in Financial Institutions,” it is the first-ever ORM certification course and it is focused on people who wish to pursue careers in operational risk in financial institutions. In addition, those already in established risk roles, including senior personnel such as chief risk officers and heads of risk, will find it highly beneficial. Auditors, regulators, and business line managers are among others who will gain much from the course.  

Training and certification goals

Financial institutions today must observe recognised standards and ensure operational risk managers have the required qualifications to implement and monitor operational risk management tools and frameworks. This course will help participants improve the reliability of business operations and avoid losses from poor risk management within their organisations. 

Designed and delivered by risk experts, the course combines theory with best practices and will provide the skills, knowledge, and professional status to lead operational risk functions in financial services. Participants will gain a solid understanding of regulatory requirements and best practices, learn how to establish an operational risk management framework, and explore the methods and tools to identify, assess, mitigate, and monitor operational risk. 

After completing the course, participants can take an exam and apply to be a PECB Certified Operational Risk Manager. There are three course levels with related qualifications:  

• ORM Foundation (two days)
• ORM Manager (three days)
• ORM Lead Manager (five days)  

A modular approach

The content of the course is arranged so that participants can select the required blocks to obtain certification at Foundation, Manager, or Lead Manager levels. The core components for all levels are: regulatory context and risk governance; frameworks and policies; risk appetite; incident data collection; and risk and control self-assessment. 

At Manager level, there are three additional blocks: risk culture; key risk indicators; and operational risk disclosures and reputation. Lead Manager includes these three blocks and adds two more: scenario analysis and capital modelling. Each block covers the learning objectives and the required knowledge that will be tested for each certification. 

Example of a course block

The regulatory and governance block, which is taken at all three levels, covers regulatory requirements and explains the role of governance and risk management, the three lines model, the recommended risk governance structure, and the role and responsibilities of the risk committee. The learning objective is to provide participants with a deep understanding of operational risk management from a regulatory perspective, as well as the importance of governance for a successful risk management framework. 

Teaching method and style

The course draws on the combined knowledge and experience of subject matter experts from across the financial services industry. Lectures are illustrated with real-world examples, and participants take part in discussions and exercises to deepen their understanding. The trainers have a very interactive and warm style of training delivery that helps to convey complex information and make students feel comfortable and involved. “Too often, important information is lost in transmission,” says Ariane Chapelle, CEO of Chapelle Consulting, “but we’ve designed a course that is both highly relevant for financial institutions and delivered in an approachable and engaging way.”