Upload
juliana-hunt
View
239
Download
2
Tags:
Embed Size (px)
Citation preview
Operational Risk Operational Risk Management Management
& & the the
Trinidad & Tobago Trinidad & Tobago ExperienceExperience
presented by presented by Mr. Anthony Taitt, Mr. Anthony Taitt,
Trinidad & Tobago Central Trinidad & Tobago Central DepositoryDepository
AGENDAAGENDA
Definition of Operational Definition of Operational RiskRisk
Measuring Operation RiskMeasuring Operation Risk
Financial Institutions Financial Institutions Activities & Operational Activities & Operational RiskRisk
Operational Risk Management Operational Risk Management FrameworkFramework
AGENDAAGENDACorporate Governance in Trinidad & Corporate Governance in Trinidad & TobagoTobago–Structure for the Domestic Structure for the Domestic Financial SystemsFinancial Systems
–Enterprise Risk Management Enterprise Risk Management Framework & PolicyFramework & Policy
Operational Risk Management – Operational Risk Management – Stock ExchangeStock Exchange–The ExperienceThe Experience–The FrameworkThe Framework–The OutcomeThe Outcome
Trinidad & Tobago Trinidad & Tobago Central DepositoryCentral Depository
Operational RiskOperational Risk
The risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.
This definition does not include strategic or reputation risks.
Measuring Operational Measuring Operational RiskRisk
Using the Matrix Approach to measure risks the following events held the highest Using the Matrix Approach to measure risks the following events held the highest impact potential:impact potential:
Internal & External FraudInternal & External FraudWorkplace Health & SafetyWorkplace Health & SafetyBusiness PracticesBusiness PracticesPhysical Asset DamagePhysical Asset DamageBusiness Disruption & System FailuresBusiness Disruption & System FailuresExecution,Delivery & Processes ManagementExecution,Delivery & Processes Management
Financial Institutions’ Financial Institutions’ Activities & Operational Activities & Operational
RiskRiskPeople - Management Failure, People - Management Failure,
Organizational Structure, HR Organizational Structure, HR FailuresFailures
Processes – Process Breakdown, Processes – Process Breakdown, Inadequate Process MappingInadequate Process Mapping
Systems – System Disruption, Systems – System Disruption, System Failures in both Internal & System Failures in both Internal & External Outsourced OperationsExternal Outsourced Operations
Events – Natural Disasters, Events – Natural Disasters, Terrorism & VandalismTerrorism & Vandalism
Operational Risk Operational Risk Management FrameworkManagement Framework
Independent Firm-Wide Independent Firm-Wide Operational Risk FunctionOperational Risk Function
Line Management OversightLine Management Oversight
Independent Testing & Independent Testing & Verification FunctionsVerification Functions
Corporate Corporate GovernanceGovernance
Trinidad & Tobago Experience Trinidad & Tobago Experience with Operational Riskwith Operational Risk
Structure for the Domestic Structure for the Domestic Financial SystemsFinancial Systems
Enterprise Risk Management:Enterprise Risk Management: Framework & Policy Framework & Policy
Enterprise Risk Enterprise Risk Management Framework & Management Framework &
PolicyPolicy
The ExperienceThe ExperienceTTCD began Registry services and the TTCD began Registry services and the
clients began demanding Business clients began demanding Business Continuity Plans & Disaster Recovery Continuity Plans & Disaster Recovery Plans be developed & implemented.Plans be developed & implemented.The TTSE agreed to link with the The TTSE agreed to link with the
Barbados & Jamaica Exchanges to Barbados & Jamaica Exchanges to establish a virtual Regional Exchangeestablish a virtual Regional ExchangeSteering Committee meetings revealed Steering Committee meetings revealed
limitations to just oversee projects & limitations to just oversee projects & reconstituted itself as an Enterprise reconstituted itself as an Enterprise Risk Management Steering Committee Risk Management Steering Committee (ERMSC )(ERMSC )ERMSC submitted its new mission & ERMSC submitted its new mission &
objectives to the board for approval & objectives to the board for approval & the 5 Managers involved were to each the 5 Managers involved were to each oversee a specific risk category.oversee a specific risk category.
Operational Risk ManagementOperational Risk ManagementTrinidad & Tobago Stock Trinidad & Tobago Stock
ExchangeExchange
The FrameworkThe FrameworkExchange Board established a firm-Exchange Board established a firm-
wide Operational Risk Policywide Operational Risk PolicyERMSC now establishes & approves ERMSC now establishes & approves
all risk policiesall risk policiesAll other risk committees review All other risk committees review
all procedures then submit to ERMSC all procedures then submit to ERMSC for approvalfor approvalInternal Audit performs Internal Audit performs
independent reviews of all risk independent reviews of all risk policies and procedures.policies and procedures.
Operational Risk ManagementOperational Risk ManagementTrinidad & Tobago Stock Trinidad & Tobago Stock
ExchangeExchange
Operational Risk ManagementOperational Risk ManagementTrinidad & Tobago Stock Trinidad & Tobago Stock
ExchangeExchangeThe OutcomeThe Outcome
Increase in STAFF to compliment Increase in STAFF to compliment departments to reduce the loss of departments to reduce the loss of key employeeskey employees
The board has agreed to have a Hot The board has agreed to have a Hot Site constructed to complement the Site constructed to complement the Disaster Recovery PlanDisaster Recovery Plan
Implementation of a Real –Time Implementation of a Real –Time Replication infrastructure at the Replication infrastructure at the Hot Site when completedHot Site when completed
Implement a network infrastructure Implement a network infrastructure that eliminates the single points that eliminates the single points of failure within the Exchange of failure within the Exchange network.network.
Operational Risk Operational Risk ManagementManagement
&&the the
Trinidad & Tobago Trinidad & Tobago ExperienceExperience
Thank You for Having Us!Thank You for Having Us!
Mr. Anthony TaittMr. Anthony TaittGeneral ManagerGeneral Manager
Trinidad & Tobago Central Trinidad & Tobago Central Depository.Depository.