Welcome to Session 3

This session helps you deepen operational-risk assessment. You will use three practical tools together: scenario analysis, control evaluation, and event review. The goal is to turn risk language into a clear assessment view that management can act on.

Learning objectives

1. Explain the purpose of scenario analysis in assessing operational-risk exposures beyond historical loss experience.
2. Evaluate the design and operating effectiveness of preventive, detective, corrective, and monitoring controls.
3. Use event review and lessons learned to identify underlying causes, control weaknesses, and management actions.
4. Differentiate between inherent exposure, control strength, residual exposure, and escalation implications.
5. Produce a structured assessment note that combines scenario analysis, control evaluation, and event review.

Core ideas for this session

• Scenario analysis supports forward-looking operational-risk assessment.
•  Control evaluation should separate design effectiveness from operating effectiveness.
• Event review turns incidents and near misses into learning.
• Residual risk depends on both the exposure and the real strength of controls.
• A practical assessment note should combine scenario, controls, evidence, and action priorities.