Customised Game-based Learning Programmes for our Banking Client

Banking Operation Executives’ Risk Management Series

The pervasive nature of operational risk creates practical challenges for management as such risk may stem from a wide range of operational failure events such as processing errors, internal and external fraud, legal claims, and business disruptions. These risks have traditionally been managed by relying on appropriate internal processes controls, audit programs, insurance protection, and other risk management tools.

However, according to the “Best Practice in Risk Management” report issued by the Economist Intelligence Unit in 2007, the key determinant of success in risk management lies in the strong culture and awareness of risk that permeates every layer of the organisation. Hence, close integration between risk and business functions in the organisation is important.

Incidentally, the Bank for International Settlements’ report on “Observed range of practice in key elements of Advanced Measurement Approaches (AMA)” prepared by the Standards Implementation Group’s Operational Risk Subgroup (SIGOR) in Jul 2009 reveals common best practice by members. These member banks adopted an internal governance structure comprising of three lines of defence to manage operational risk:

  1. Business line management is responsible for identifying and managing risk in relation to     the activities and processes for which they are responsible (1st line of defence);

  2. Independent corporate operational risk function (2nd line of defence); and

  3. Independent review and validation (3rd line of defence)

Our Operation Executives’ Risk Management Series have been developed specially for operation staff responsible for processing activities in the business units. The series comprised of three modules:

  1. Mitigating Operational Risk – Creating Risk Awareness and Culture;

  2. Basic Accounting and Reconciliation – Improving financial data entry quality;

  3. Business & Financial Acumen – Mitigating NPL risk of Enterprise/Business Loans


1. Mitigating Operational Risk – Creating Risk Awareness and Culture

“Module 1 – Mitigating Operational Risk” covers 50% of the Operational Risk programme that leads to the award of CISI Investment Operations Certificate.

This is a highly engaging training that allows participants to realize the type of inherent risks embedded in selected business processes selected to be covered in the training.

Through the interactive board game learning activities, participants will understand the business processes’ value chain and potential risk exposures within the value chain; the control mechanism in place to address respective risk; and the potential financial and non-financial impact of respective risk on the institution. Staff will be able to appreciate and relate their current role within the control mechanism.

Key Benefits:

  • Improves risk culture through awareness of risk and controls;

  • Realizes the importance of their current role in the risk management process;

  • Appreciates the impact (financial and non-financial) of weakness in controls;

  • Improves the work attitude and commitment of staff once they see the big picture;

  • Enhances compliance to instituted Standard Operating Procedures.


2. Basic Accounting and Reconciliation (BAR)
(Improving financial data entry quality)

This is a highly interactive training facilitated by playing board game. The module is effective in assisting staff within an organisation improve work efficiency and profitability through effective working capital management and identification of value drivers of the business.

The module equips participants with strong understanding of accounting knowledge in order to mitigate input errors into the system and enhance their ability to spot irregularities and perform reconciliation correctly.

During the workshop, participants will realise the impact of one’s error in the work flow value chain and how it affects the stakeholders of the organisation. With this high level understanding, participants will become more conscientious of the importance of good work practices and attitudes. This training has been a very effective operational risk mitigation tool relating to data entry for our banking clients.

Key Benefits:

  • Reduce NPL risk of banks;

  • Mitigate wrong input of data into IT systems due to lack of accounting knowledge;

  • Drives awareness on the implication of one’s poor work attitude on the financial and reputation impact of the organization and its   stakeholders;

  • Link the accounting concepts to staff’s daily work and processes so that they realize the impact of their work on the down-stream processes   and financial results;

  • Strengthen loyalty to bank and bank’s market position.


3. Business & Financial Acumen
(Mitigating NPL risk of Enterprise/Business Loans)

This is a highly interactive training facilitated by playing board game. The module is effective in assisting staff within an organisation improve work efficiency and profitability through effective working capital management and identification of value drivers of the business.

This training is commonly used at managerial level to improve financial knowledge of managers in order to drive improvement to working capital. It enables managers to see the ‘big picture’ of where costs are incurred and revenue created and how silo thinking in setting performance measures can be detrimental to organizations.

This training will equip Enterprise Banking staff with business and financial knowledge to assess their clients’ business and financial status. In addition, they will be able to provide valuable service to their enterprise clients by guiding them on how to improve working capital, cash flow and profitability. Consequently, this value added service will mitigate the financial institution’s NPL risk for business related loans to enterprise clients.

Key Benefits:

  • Improves risk culture through awareness of risk and controls;

  • Reduce non-performing loan risk;

  • Improves business and financial acumen of Enterprise Banking staff in approving loans;

  • Value-add to Enterprise Banking clients by helping client to improve cash flow, working capital management and profits;

  • Improves the bank’s image as trusted and caring “business partner” to Enterprise Banking clients, resulting in more quality referral;

  • Strengthen loyalty and market position of the bank.