Operational risk management (ORM) training teaches loss prevention strategies for various risks, including fraud, employee error, system failures, terrorism, and natural disasters. Completing ORM training and passing an exam can lead to certification as a CIA, CPA, or CMA. ORM classes are available at universities and online, and can help companies negotiate lower insurance rates and provide comfort to shareholders. Banks face increasing operational risks and need to collect data on losses to calculate reserves.
Operational risk management (ORM) training is specialized instruction in loss prevention strategies for risks that businesses and organizations may encounter. These risks embody a variety of areas, including fraud, employee error, system failures, terrorism and natural disasters. Programs that provide operational risk management training vary widely depending on the needs and risk areas of the organization or business. Candidates who complete ORM training can take an exam to demonstrate their competency in operational auditing standards, internal controls, documentation policies, and risk management tools. If they pass the exam, they can earn certification as a certified internal auditor (CIA), certified public accountant (CPA), or certified management accountant (CMA).
Many senior management executives pursue risk management certification to better familiarize themselves with industry-specific risk mitigation and management tools. Most operational risk management training programs that lead to ORM certification require prospective candidates to have degrees in risk management, accounting, or finance. In addition, applicants must have at least two years of related professional experience before being eligible for programs. Some programs require candidates to work under the supervision of an experienced, senior-level operational risk manager for a term.
Risk management classes are also available at many colleges and universities in their business and finance departments. In addition, several organizations offer online courses in operational risk management. While these classes do not lead to certification, the information derived from them can not only equip the company executive to deal with threats of catastrophic operational failures and failures, but also the company can negotiate lower insurance rates once ORM plans are in place. in effect. It is made. Additionally, shareholders who demand security for their investments will have an enhanced level of comfort with a company, knowing that the company has a plan in place to identify and deal with all events that could harm the business.
Banks, in particular, face increasing operational risks due to deregulation, globalization and technological change. The Basel Committee on Banking Supervision (BCBS), as part of capital adequacy requirements, has begun to charge banks for intrinsic and extrinsic risks in the banking system. These risks include a wide range of threats including data entry errors, software disruptions, fiduciary breaches, hackers and insider fraud. Operational risk management training enables bank employees to collect data on losses and calculate the amount of money the bank should hold in reserve to cover future losses.
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