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This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

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Tackling the Cost of Living Crisis

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In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

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Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

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Plans & Membership

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Finance Unlocked to your current platform

Featured Content

More featured content

Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

More featured content

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Operational Risk Best Practice

Operational Risk Best Practice

Olaf Ransome

25 years: Operational risk

Three important words that make up a process are policy, procedure and checklist. In this video, Olaf focuses on each of these components as he provides an overview of operational foundations.

Three important words that make up a process are policy, procedure and checklist. In this video, Olaf focuses on each of these components as he provides an overview of operational foundations.

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Operational Risk Best Practice

10 mins 34 secs

Overview

The operational foundations of Operational Risk (OpRisk) involve the theories behind policies, procedures, checklists, the people who are involved in these decisions and whether the systems in place are efficient.

Key learning objectives:

  • Identify what makes up a process, and its key components

  • Judge which is more important: a policy or procedure

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Summary

What is imperfect competition, and how does it affect profits?

  • Imperfect competition - Allows market participants to earn supernormal profits. Generally, these markets are prone to OpRisk.
  • Perfect competition - If there is more competition, you would earn normal profits, in other words, no-one earns above abnormal profits. In this case, the one who makes the most profit is the operation with the best and most efficient processes.

What are the three steps that make up a process?

  1. Policy
    • This is about what may be done, what may not be done and who approves what. Policies are essential for guiding people how to run a business. They are set by management and the board
  2. Procedure
    • This is about how the company should do something. For example, it may have various levels - Plan A, if that fails, follow Plan B. This procedure is necessarily detailed, and is probably a long document
  3. Checklist
    • This is simply a list of all the steps mentioned, in chronological order

What is the Standard Operating Procedure?

A clearly written set of instructions for methods detailing the procedures for carrying out a routine or recurring task or study. The US Army is very helpful on matters of procedure. An Army may march on its stomach, but how it marches is dictated by procedure.

Why is it important to have an adaptable process?

It is important to have a process. However, if that process needs to be changed, or even could be changed for the better, then a culture needs to be in place that allows change in a bottom up way. “Authority should be vested in the people doing the work to improve their own processes to teach them how to measure them and to understand them. They should not have to ask for permission to improve their processes”.

What are the three components of a process?

  1. People
    • Who is involved in the process, and are they trained to the level to be able to execute the process?
  2. Procedure
    • Do they know what to do, and do they know what to do when things do not go to plan?
  3. Systems
    • Do they have the right tools to enable them to complete the process?

Which is more important: Policy or Procedure?

Policy is often seen as the most important, however, what actually happens is determined at the coal face, by procedures. For example, in 2016, the Luxembourg arm of Nordea was investigated surrounding undeclared assets. What was found was that policy was more honoured in the breach than the observance. The procedures were not fit for purpose. There was a procedure, the instructions for how to do things, in place. But, they were inadequate.

What are the key takeaways?

  • Policies alone are not that useful
  • Procedures on their own are quite useful
  • Checklists make things useful

When things go wrong and you want to analyse what happened, you need to be able to determine whether you had an accident waiting to happen - an inadequate process, or whether there was an adequate process that was not followed.

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Olaf Ransome

Olaf Ransome

Olaf helps banks and FinTechs master their processing; optimising control, capacity and cost. In the last 30 years, Olaf has worked in Investment and Private Banking, helping banks change their infrastructure to support new business or expand business.

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