Certified Risk and Compliance Professional

Course Title

Certified Risk and Compliance Professional (CRCP)™ - Prep Course

(5 days)

Objectives:

This course has been designed to provide with the knowledge and skills needed to understand and support regulatory compliance and enterprise wide risk management, and to promote best practices and international standards that align with business and regulatory requirements.
The course provides with the skills needed to pass the Certified Risk and Compliance Professional (CRCP) exam.

Target Audience:

This course is intended for professionals that want to understand risk and compliance and to work as risk and compliance officers. They will prove that they are qualified, when they pass the Certified Risk and
Compliance Professional (CRCP) exam.
This course is intended for employers demanding qualified risk and compliance professionals.
This course is recommended for senior executives involved in risk and compliance.

About the Course

PART A: COMPLIANCE WITH LAWS AND REGULATIONS, AND RISK MANAGEMENT

Introduction

Regulatory Compliance and Risk Management

Definitions, roles and responsibilities

The role of the board of directors, the supervisors, the internal and external auditors

The new international landscape and the interaction among laws, regulations, and professional standards
The difference between a best practice and a regulatory obligation
Benefits of an enterprise wide risk and compliance program
Compliance culture: Why it is important, and how to communicate the regulatory obligations

Policies, Workplace Ethics, Risk and Compliance

Policies, procedures and the ethical code of conduct

Privacy and information security
Handling confidential information
Conflicts of interest
Use of organizational property
Fair dealings with customers, vendors and competitors
Reporting ethical concerns

Governance, Risk and Compliance

The definition of Governance, Risk and Compliance
The need for Internal Controls
Understand how to identify, mitigate and control risks effectively
Approaches to risk assessment
Qualitative, quantitative
Integrating risk management into corporate governance and compliance

PART B: THE FRAMEWORKS

Internal Controls

The Internal Control — Integrated Framework by the COSO committee

Using the COSO framework effectively
The Control Environment
Risk Assessment
Control Activities
Information and Communication
Monitoring
Effectiveness and Efficiency of Operations
Reliability of Financial Reporting
Compliance with applicable laws and regulations
IT Controls
IT Controls and Sarbanes Oxley Act Relevance
Program Development and Program Change
Deterrent, Preventive, Detective, Corrective, Recovery,
Compensating, Monitoring and Disclosure Controls
Layers of overlapping controls

The COSO Enterprise Risk Management (ERM) Framework

Is COSO ERM needed for compliance?
COSO AND COSO ERM
Internal Environment
Objective Setting
Event Identification
Risk Assessment
Risk Response
Control Activities
Information and Communication
Monitoring
The two cubes
Objectives: Strategic, Operations, Reporting, Compliance
ERM – Application Techniques
Core team preparedness
Implementation plan
Likelihood Risk Ranking
Impact Risk Ranking

COBIT - the framework that focuses on IT

Is COBIT needed for compliance?
COSO or COBIT?
Corporate governance or financial reporting?
Executive Summary
Management Guidelines
The Framework
The 34 high-level control objectives
What to do with the 318 specific control objectives
COBIT Cube

Maturity Models

Critical Success Factors (CSFs)
Key Goal Indicators (KGIs)
Key Performance Indicators (KPIs)
How to use COBIT for Sarbanes Oxley compliance

PART C: SARBANES OXLEY

The Sarbanes Oxley Act
The Need
US federal legislation: Financial reporting or corporate governance?
The Sarbanes-Oxley Act of 2002: Key Sections
SEC, EDGAR, PCAOB, SAG
The Act and its interpretation by SEC and PCAOB
PCAOB Auditing Standards: What we need to know

Management's Testing

Management's Documentation

Reports used to Validate SOX Compliant Infrastructure
Documentation Issues
Sections 302, 404, 906: The three certifications
Sections 302, 404, 906: Examples and case studies
Management's Responsibilities
Committees and Teams
Project Team – Section 404: Reports to Steering Committee
Steering Committee – Section 404: Reports to Certifying Officers and cooperates with Disclosure Committee
Disclosure Committee: Reports to Certifying Officers and cooperates with Audit Committee
Certifying Officers and Audit Committee: Report to the Board of Directors

Control Deficiency

Deficiency in Design

Deficiency in Operation

Significant Deficiency

Material Weakness

Is it a Deficiency, or a Material Weakness?
Reporting Weaknesses and Deficiencies
Examples
Case Studies
Public Disclosure Requirements
Real Time Disclosures on a rapid and current basis?
Whistleblower protection
Rulemaking process
Companies Affected
International companies

Foreign Private Issuers (FPIs)

American Depository Receipts (ADRs)
Employees Affected
Effective Dates

PART D: BASEL II

The New Basel Capital Accord (Basel II)
Realigning the regulation with the economic realities of the global
banking markets
New capital adequacy framework replaces the 1988 Accord
Improving risk and asset management to avoid financial disasters
"Sufficient assets" to offset risks
The technical challenges for both banks and supervisors
How much capital is necessary to serve as a sufficient buffer?
The three-pillar regulatory structure
Purposes of Basel II

Pillar 1: Minimum capital requirements

Credit Risk – 3 approaches
The standardized approach to credit risk
Claims on sovereigns
Claims on banks
Claims on corporates
The two internal ratings-based (IRB) approaches to credit risk
Some definitions: PD - The probability of default, LGD - The loss
given default, EAD - Exposure at default, M – Maturity
5 classes of assets

Pillar 2: Supervisory review

Key principles
Aspects and issues of the supervisory review process

Pillar 3: Market discipline

Disclosure requirements
Qualitative and Quantitative disclosures
Guiding principles
Employees Affected
Effective Dates

Operational Risk

What is operational risk
Legal risk
Information Technology operational risk
Operational, operations and operating risk
The evolving importance of operational risk
Quantification of operational risk
Loss categories and business lines
Operational risk measurement methodologies
Identification of operational risk

Operational Risk Approaches

Basic Indicator Approach (BIA)
Standardized Approach (SA)
Alternative Standardized Approach (ASA)
Advanced Measurement Approaches (AMA)
Internal Measurement Approach (IMA)
Loss Distribution (LD)
Standard Normal Distribution
“Fat Tails” in the normal distribution
Expected loss (EL), Unexpected Loss (UL)
Value-at Risk (VaR)
Calculating Value-at Risk
Stress Testing
Stress testing and Basel

( AMA) Advantages / Disadvantages

Operational Risk Measurement Issues
The game theory
The prisoner’s dilemma – and the connection with operational risk
measurement and management

Operational risk management

Operational Risk Management Office
Key functions of Operational Risk Management Office
Key functions of Operational Risk Managers
Key functions of Department Heads
Internal and external audit
Operational risk sound practices
Operational risk mitigation
Insurance to mitigate operational risk

Basel II and other regulations

Capital Requirements Directive (CRD)
Markets in Financial Instruments Directive (MiFID)
What will be the impact of MiFID to EU and non EU banks?
Aligning Basel II operational risk and Sarbanes-Oxley 404 projects
Common elements and differences of compliance projects
New standards
Disclosure issues
Multinational companies and compliance challenges

PART E: DESIGNING AND IMPLEMENTING A RISK AND COMPLIANCE PROGRAM

Designing an Implementing an enterprise wide Risk and

Compliance Program

Designing an Internal Compliance System
Compliance programs that withstand scrutiny
How to optimize organizational structure for compliance

Documentation

Testing
Training
Ongoing compliance reviews and risk assessments for continuing compliance with laws and regulations

Compliance Monitoring

The company and other stakeholders
Managing the regulators and change in regulations

International and national regulatory requirements

Regulatory compliance in Europe
Regulatory compliance in the USA. What is different
The GCC countries
The Caribbean
The Pacific Rim
Common elements and differences of compliance projects
New standards
Disclosure issues
Multinational companies and compliance challenges

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