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AGENDA

Operational Risk Management & the Trinidad & Tobago Experience presented by Mr. Anthony Taitt, Trinidad & Tobago Central Depository. AGENDA. Definition of Operational Risk Measuring Operation Risk Financial Institutions Activities & Operational Risk Operational Risk Management Framework.

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AGENDA

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  1. Operational Risk Management & the Trinidad & Tobago Experiencepresented by Mr. Anthony Taitt, Trinidad & Tobago Central Depository

  2. AGENDA Definition of Operational Risk Measuring Operation Risk Financial Institutions Activities & Operational Risk Operational Risk Management Framework

  3. AGENDA Corporate Governance in Trinidad & Tobago Structure for the Domestic Financial Systems Enterprise Risk Management Framework & Policy Operational Risk Management – Stock Exchange The Experience The Framework The Outcome

  4. Trinidad & Tobago Central Depository

  5. Operational Risk The risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This definition does not include strategic or reputation risks.

  6. Measuring Operational Risk Using the Matrix Approach to measure risks the following events held the highest impact potential: • Internal & External Fraud • Workplace Health & Safety • Business Practices • Physical Asset Damage • Business Disruption & System Failures • Execution,Delivery & Processes Management

  7. Financial Institutions’ Activities & Operational Risk People - Management Failure, Organizational Structure, HR Failures Processes – Process Breakdown, Inadequate Process Mapping Systems – System Disruption, System Failures in both Internal & External Outsourced Operations Events – Natural Disasters, Terrorism & Vandalism

  8. Independent Firm-Wide Operational Risk Function Line Management Oversight Independent Testing & Verification Functions Operational Risk Management Framework

  9. Corporate Governance Trinidad & Tobago Experience with Operational Risk • Structure for the Domestic Financial Systems • Enterprise Risk Management: Framework & Policy

  10. Enterprise Risk Management Framework & Policy

  11. Operational Risk ManagementTrinidad & Tobago Stock Exchange The Experience TTCD began Registry services and the clients began demanding Business Continuity Plans & Disaster Recovery Plans be developed & implemented. The TTSE agreed to link with the Barbados & Jamaica Exchanges to establish a virtual Regional Exchange Steering Committee meetings revealed limitations to just oversee projects & reconstituted itself as an Enterprise Risk Management Steering Committee (ERMSC ) ERMSC submitted its new mission & objectives to the board for approval & the 5 Managers involved were to each oversee a specific risk category.

  12. Operational Risk ManagementTrinidad & Tobago Stock Exchange The Framework Exchange Board established a firm-wide Operational Risk Policy ERMSC now establishes & approves all risk policies All other risk committees review all procedures then submit to ERMSC for approval Internal Audit performs independent reviews of all risk policies and procedures.

  13. Operational Risk ManagementTrinidad & Tobago Stock Exchange The Outcome Increase in STAFF to compliment departments to reduce the loss of key employees The board has agreed to have a Hot Site constructed to complement the Disaster Recovery Plan Implementation of a Real –Time Replication infrastructure at the Hot Site when completed Implement a network infrastructure that eliminates the single points of failure within the Exchange network.

  14. Operational Risk Management & the Trinidad & Tobago Experience Thank You for Having Us! Mr. Anthony TaittGeneral ManagerTrinidad & Tobago Central Depository.

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