CISI Operational Risk case studies

CISI Operational Risk · Put your knowledge to work in context.

The CISI Operational Risk examination is a professional qualification from the Chartered Institute for Securities & Investment (CISI) that tests whether a candidate understands how operational risk is identified, measured, governed and controlled inside a financial services firm. It is aimed at staff who work with operational risk day to day: risk and compliance professionals, operations and middle-office staff, internal auditors, control-testing teams, and line managers who own risks in their business unit. The CISI Operational Risk case studies are 5 cases and about 4,707 words.

RCSA scoring drift and an inoperable risk appetite at a wealth manager

Meridian Wealth, a UK wealth manager with £8bn AUM and 1,200 staff, has just completed its first firm-wide risk and control self-assessment (RCSA). Fourteen business units scored 62 operational risks on a 1–5 scale, where 1 was described as 'low' and 5 as 'high'.

993 words, about 5 min 2

Choosing between the Basic Indicator and Standardised Approaches for operational risk capital

Northbridge Bank is a UK retail and commercial bank with a small asset management arm. Its three-year average gross income is £400m, split as retail banking £200m, commercial banking £150m and asset management £50m.

949 words, about 5 min 3

A missed corporate action election, a late incident ticket and a control rated effective

Arden Asset Management, with £12bn AUM, administers income elections on its funds. In March a dividend election for a £300m holding was missed because the custodian's instruction deadline was misread; the fund received the default cash option rather than the higher-value stock option.

913 words, about 5 min 4

Ransomware at a platform provider, a 31-hour outage and a cyber policy with exclusions

Halden Retail Broker uses a third-party platform, Cobalt, to host its order management system and client portal. In November a ransomware attack on Cobalt took the platform offline for 31 hours.

924 words, about 5 min 5

Collections outsourcing, a per-pound incentive and a non-material classification

Kestrel Bank outsources its retail collections and recoveries to Vantage, a provider operating from two sites in another jurisdiction. The contract covers 400,000 customers and pays Vantage a fee per £1 collected, with a monthly bonus for exceeding recovery targets.

928 words, about 5 min