GenAI and Operational Risk: Examining Risks and Opportunities

Workshop overview:

GenAI represents a must-examine area for operational risk professionals, both in terms of understanding the risks it poses and exploring the opportunities it provides. This interactive course, with live polls, case studies, group work and Q&A, conducted by two leading industry experts, explores how GenAI can revolutionise operational risk management, enhancing efficiency and accuracy. It also focuses on the key risks that GenAI poses, highlighting the dynamic regulatory landscape and aiding in building robust governance and risk management arrangements, integrating GenAI into the operational risk framework, tools and processes.

All sessions have been designed to facilitate communication and interaction between participants and the course leaders, Elena Pykhova and Manoj Kulwal.

Pre-requisite: It is desirable, however not essential, for participants to have access to Microsoft Copilot 365, in order to engage with the practical use cases demonstrated during this course via hands-on practice. Participants without access will still fully benefit from the course, understanding and visualising the use cases.

Learning outcomes:

Explore the benefits of implementing GenAI technologies in OpRisk
Review ten real-life use cases, currently implemented in OpRisk management
Understand the industry state of play on the use of GenAI
Examine the dynamic GenAI regulatory landscape
Review the key risks that GenAI poses
Build effective GenAI governance arrangements
Discuss the dual role of operational risk teams, in exploring GenAI solutions and leading firm-wide risks and opportunities assessment
Benchmark your progress with peers: review where you stand relative to industry developments
Develop a plan on how you will make a difference to your workplace following the course.

Interested in taking any of our workshops in-house

Whether you are seeking to upskill your team, enhance productivity or foster a culture of continuous learning, we can deliver customised training programmes designed to meet your specific needs. If you have an enquiry, you can complete the in-house form and our training team will be in touch with next steps.

IN-HOUSE TRAINING

Area of expertise:

Payments, innovation & resilience Prudential risk, reporting and tax

Tags:

Operational Risk Risk

Day one:

Introduction to AI and GenAI

GenAI vs. traditional AI
Benefits of utilising GenAI for operational risk management
Review of currently available GenAI models
Introduction to Microsoft Copilot
Utilising prompt engineering principles to extract high-quality outputs from the GenAI models
Use Case one: Identifying operational risks related to a business process. Analyse the causes and impacts related to the identified risks
Use Case two: Identifying and documenting controls.

GenAI and operational risk use cases

Use case three: Documenting control assessment/testing scripts
Use case four: Identifying KRIs for monitoring risks
Use case five: Defining remediation actions for loss events &and issues
Use case six: Preparing PowerPoint presentations
Use case seven: Analysing and summarising risk-related information to perform RCSAs.

GenAI and operational risk use cases (continued)

Use case eight: Preparing content for risk committee reports
Use case nine: Documenting and updating policies
Use case ten: Prepare content for risk & compliance training courses
Exploring the advanced use cases involving wider roll-out of GenAI for operational risk management stakeholders across the three lines.

Day two:

GenAI: Understanding the risk landscape

Exploring the risks with a focus on practical examples, including:

Increased Cyber risk: industry case studies and lessons learned
Data risk: developing controls to protect against data breaches
Third-party risk in the context of GenAI
Model risk: understanding and managing model risk
Live poll and discussion: managing GenAI risk landscape.

External regulatory landscape and internal governance arrangements

Examining the dynamic GenAI regulatory landscape and latest publications
Core requirements: EU AI Act, NIST and ISO 42001
Developing GenAI Governance Frameworks
Roles and responsibilities: dual role of operational risk teams
Leading firm-wide risks and opportunities assessment
Exploring the use of GenAI in operational risk management
Live poll and discussion: state of implementation of industry guidelines.

Integrating GenAI risks into operational risk framework

GenAI in operational risk taxonomy
RCSAs: core tool for risk identification
Scenario analysis: creating impactful scenario storylines
Risk appetite and KRIs: designing effective indicators
Live poll and discussion: GenAI in operational risk framework
Wrap-up: conclusions and key takeaways
Make a difference: next steps and building an individual action plan.

Elena Pykhova

Trainer

Elena Pykhova is award-winning risk expert, author, international trainer and educator. She is the founder of a boutique risk management consultancy, ...

Elena Pykhova is award-winning risk expert, author, international trainer and educator. She is the founder of a boutique risk management consultancy, The OpRisk company, specialising in risk transformation, board and executive level advice on effective operational and enterprise risk management strategy, design and implementation. Elena is an author of a best-selling book, Operational Risk Management in Financial Services: A Practical Guide to Establishing Effective Solutions.

She is a renowned educator, running public and in-house training courses in the UK and internationally for world-leading organisations including Euronext, the Moller Center Cambridge University and the Institute of Internal Auditors. Elena is a thought leader, influencer and founder of a prominent industry think tank, the Best Practice Operational Risk Forum. She is a former Director for Education at the Institute of Operational Risk and chair of the Expert Panel for the Association of Foreign Banks. Passionate about the discipline, she founded her training and consulting practice after 20 years of experience in senior roles at Fortune 500 companies.

Manoj Kulwal

Chief Risk & AI Officer, RiskSpotlight

Manoj Kulwal is passionate about utilising risk management as a business management tool for designing effective business strategy and successfully im...

Manoj Kulwal is passionate about utilising risk management as a business management tool for designing effective business strategy and successfully implementing the selected strategy. He has been involved in development of the international risk management standard ISO 31000 and in development of Certificate of Operational Risk Management offered by The Institute of Operational Risk. He has trained more than 1,000+ operational risk management practitioners from financial services firms globally over the last 5 years. He is actively involved in hosting operational risk related webinars with experienced operational risk management practitioners and industry experts.

He is currently the Co-Founder and Chief Risk Officer at RiskSpotlight. At RiskSpotlight, he leads the team that developed the world's first forward-looking operational risk news service - RiskSpotlight Portal.

The course has been designed to appeal to risk professionals and individuals responsible for leading and implementing GenAI solutions, or interested to learn about effective GenAI practices, including: