Day 1

Day 1 - 15 September 2010

Day 2 - 16 September 2010

8:20 Registration

8:50 Chairman’s opening remarks

9:00 KEYNOTE ADDRESS

Tsuyoshi Nagafuji, Head of Operational Risk, the Basel II Implementation Office, FINANCIAL SERVICES AGENCY (JAPAN)

9:30 PRESENTATION: Stress-testing operational risk capital

• Anticipating CEBS evolved regulatory requirements for stress-testing – will they be too prescriptive?
• Is stress-testing an adequate method to measure economic and regulatory capital?
• Generating effective stress-testing scenarios
• Avoiding duplications and redundancy

10:00 PRESENTATION: Determining risk appetite and implementing effective Key Risk Indicators

• Defining risk appetite (high level and for businesses)
• The relationship between risk appetite and appropriate setting of KRI and KCI thresholds
• Selection, tracking and reporting
• Risk response strategies
• Validation and benchmarking
• Is there a need for increased standardization of KRI methodology?

Kevin Headley, Head of Operational Risk, Southeast Asia, NOMURA

10:30 Coffee break

11:00 PRESENTATION: Mirror images - RCSA

• What does an effective RCSA process look like?
• How can it add value to business management?
• How to communicate this effectiveness at a strategic level

Guntupalli Bharan Kumar, Deputy General Manager, Operational Risk Management, ICICI BANK

11:30 PRESENTATION: Strategic focus – the role of operational risk in strategy

• Aligning operational risk initiatives with business strategy
• Defining enterprise and business-line goals
• Risk/reward decisions
• Building long-term resilience vs. short-term gains

Richard Mais, Head of Operational Risk, Wholesale Banking, NATIONAL AUSTRALIA BANK

12:00 PRESENTATION: Managing fraud and theft

• Promoting the involvement/building bridges between the business community in reporting and controls – working both ways
• The need for openness and transparency, not legalism and bureaucracy in watchdog organizations
• Watchful eyes: how to identify threats to your business and consequent steps in tackling them. Ensuring internal procedural methodologies are reliable.
• Corporate preparedness: avoiding fraud and economic attacks to your business.
• Compliant pathways: the significance of compliance departments in overseeing and reporting. Need for regular discussion.
• Personnel management: proper checks in place to avoid recruitment of fraudulent staff.
• Whistleblowers: promoting ethical culture and encouraging whistleblowers. Is there a need to ensure the protection of whistleblowers? What needs to be done to promote reporting?
• SFO and SEC examples

A.R. Demeter, Regional Director of Investigations, CITIGROUP SECURITY & INVESTIGATIVE SERVICES

12:30 Lunch

13:30 PANEL DISCUSSION: Culture shock - determining your risk culture and applying a governance framework

• Commercializing your risk – how can KRIs be linked to financial performance?
• Overcoming the challenges in behavior to develop a holistic-based risk-management approach
• Has the role of ORMs changed in the eyes of senior management?
• What is the role of company directors in risk management?

Anil Mahtani, Chief Operational Risk Officer & Chief Compliance Officer, ING INSURANCE AND INVESTMENT MANAGEMENT, APAC

14:20 CASE STUDY: Current state of AMA in Japan

• Regulatory framework in Japan, including JFSA’s approach for AMA
• Mega banks’ movement and regional banks’ movement in Japan
• Mizuho’s approach for AMA, including RCSA, scenario analysis, quantitative model and data to be used
• Overview of Europe and US counterparts’ approach and difference between Japan and Europe/US

Shigehiko Mori, Joint General Manager, Risk Management, MIZUHO FINANCIAL GROUP (JAPAN)

14:50 Coffee Break

15:20 SPECIAL ADDRESS: Assessing systemic risk

• Financial crisis and the focus on systemic risk
• What is systemic risk?
• Criteria for Systemically Important Institutions and Markets
• The relevance for operational risk in policies for assessment of systemic risk

Mangal Goswami, Deputy Director, IMF

15:50 CASE STUDY: Making losses work – improving the effectiveness of loss data

• Evaluating loss data consortiums – the US vs. European models.
• Approach for Asia: global v. local?
• Appropriate use of loss data and its limitations?

16:20 PANEL DISCUSSION: Balancing act – determining the balance between qualitative and quantitative operational risk modeling techniques

• Re-evaluating current models
• Can risk be still modeled?
• Incorporating qualitative risk management techniques
• The role of judgment in AMA models and the delicate balance between the former and the quantitative approaches
• The balance between internal and external data (qualitative) versus scenarios and BEICF (qualitative)

Guntupalli Bharan Kumar, Deputy General Manager, Operational Risk Management, ICICI BANK

17:10 Closing remarks

17:15 End of day 1

Day 1 - 15 September 2010

Day 2 - 16 September 2010