Instructor for this course

Operational risk is defined by the Bank for International Settlements as the "risk of loss resulting from inadequate or failed internal processes, people and systems or from external events." There are four exceptionally wide-ranging factors: internal processes, people, systems, or external events. To make them absolutely clear, the Bank for International Settlements has categorized them into seven distinct groupings that cover virtually every element of the operations of financial institutions outside of the credit and liquidity aspects.

This course examines each of the seven operational risks categories, and it provides a detailed explanation on each risk explaining what it is, what type of events are involved, why these activities pose a risk, and provides participants with clear practical examples.  

Operational risk is intrinsic in all banking products, all banking activities, all banking processes, and all banking systems. The effective management of all of these operational risks is a basic component of a bank’s risk management program.  

Learning Objectives

  • Discover the total risk spectrum.
  • Discover what the individual operational risks are.
  • Explore each of these risk categories, what they are and what causes them.
  • Identify the different types of operational risk.
  • Discover what “Black Swan” events are.
Last updated/reviewed: May 15, 2022

12 Reviews (68 ratings)Reviews

Anonymous Author
The course is well structured and expresses the many factors and elements that play a role in operational risk in financial institutions. I liked the examples provided which illustrated the different aspects of operational risk and their impact. Thanks Stanley!
Anonymous Author
This course provides a good understanding of Operational Risk especially in Financial Institutions. The aspects discussed are applicable to Financial Institutions, Government agencies, and other Business operations.
Member's Profile
Great course! Interesting risk topics with great examples. Provides an explanation of the Subprime Lending crisis, a major contributing cause of the 2007/8 GFC.
Member's Profile
Stanley is an engaging leader. He kept the course interesting and easy to follow along. I will take another of his courses on Operational Risk.
Anonymous Author
Highly educational and a great reminder of Operational risks that can be useful regardless of your job, role or responsibilities.
Member's Profile
Enjoyed the course, thank you! It was the type of course I was looking for to freshen up on my risk management core principals.
Anonymous Author
The instructor was easy to follow and he gave great examples throughout the course material to make it a breeze to understand.
Member's Profile
Another good course with several bits of useful information on what can go wrong across a broad unpredictable future
Member's Profile
I feel more prepared to take on any engagements that involve financial institutions and operational risk.
Member's Profile
Enjoyed the content! The speaker gave good examples and was through in discussion.
Anonymous Author
was a good course, a lot of information, sometimes hard to follow along
Member's Profile
Course was very informative! Instructor really knows his subject!


Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
  6:09Introduction to Understanding Operational Risk In Financial Institutions
Understanding Operational Risk
  5:28Understanding the Risk Universe
  13:58Internal Fraud
  12:49External Fraud
  3:345 Employment Practices & Workplace Safety
  14:29Clients, Products & Business Practices
  2:40Damage to Physical Assets
  5:56Execution, Delivery & Process Management
  6:31Business Disruption & System Failures
  8:11Black Swan Events
  4:28Why are we so Bad at Recognizing Operational Risk Events
  1:24:14Understanding Operational Risk in Financial Institutions
Supporting Materials
  PDFSlides: Understanding Operational Risk in Financial Institutions
  PDFUnderstanding Operational Risk in Financial Institutions Glossary/Index