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 dynamic regulatory landscapes and aiding to build robust governance and risk management arrangements, integrating GenAI into 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.

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 the 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 10 real-life use cases, currently implemented in OpRisk management
understand 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

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 & issues
Use Case six: Preparing PowerPoint presentations
Use Case seven: Analysing & 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 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 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 take-aways
Make a difference: next steps and building an individual action plan.

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:

Operational risk
Enterprise risk
Compliance
Governance and Control
Model Risk management
Internal Audit
Risk Champions
Heads of departments
Directors and Senior Executives