Learning outcomes

Core Level (Benchmarked at QF Level 4)

Module 1 – Ethics and Corporate Governance in Banking Industry
Module 2 – Regulatory Framework and Compliance in Banking Industry
Module 3 – Fundamentals of Operational Risk Management and Risk Governance

Learning outcomes

after completing Modules 1 to 3, participants will be able to:
• Comply with business ethics and understand their place within modern financial institutions; understand ethical questions encountered in the second line of defence in the context of the broader risk environment
• Assess the regulatory landscape as per defined guidelines and procedures and identify operational risks encountered by different business units of the AI
• Apply the principles and methodologies of operational risk management for conducting operational risk monitoring duties according to the AI’s policies and guidelines
• Analyse operational risks within different business units and effectively measure the likelihood and impact of such risks
• Apply appropriate techniques and requirements of operational risk assessments within different business units
• Understand the typical types of controls used in the banking industry
• Implement appropriate controls that effectively mitigate operational risks within different business units
• Examine operational risk matters and report to relevant stakeholders
• Analyse operational risk metrics and use operational risk reporting and dashboards to identify the potential operational risks

Module 1 – Ethics and Corporate Governance in Banking Industry

  • Business ethics

      • Understand business ethics, their place within modern financial institutions, ethical questions encountered in the second line of defence in the context of the broader risk environment
      • Provide understanding of identification and analysis of ethical situations in financial institutions and the management of ethics
      • Overview of ethical behaviour application and ethical decision making in the second line of defence in the context of the broader risk environment

  • • Understanding governance, risk and compliance

      • Fundamentals of governance, risk and regulatory compliance and why there is a need to understand the regulatory landscape for financial institutions
      • Key tenets of governance and culture for effective management of regulatory compliance e.g. why risk management is the key to effective compliance
      • The role of the compliance department and compliance professionals in Governance, Risk and Compliance

  • • Corporate governance in banking industry and requirements mandated upon AIs

      • Corporate Governance Code (for listed AIs)
      • Code of conduct, common policies and procedures
      • Corporate social responsibility

• Case studies, best practices and challenges associated with ethics and corporate governance in the banking industry

Module 2 – Regulatory Framework and Compliance in Banking Industry

  • • Overview of the regulatory framework under the Hong Kong Monetary Authority, the Securities and Futures Commission and the Insurance Authority
      • Overview of the regulatory regimes in Hong Kong, providing an understanding of how regulations and applicable laws impact the operations of financial institutions
  • • HKMA Bank culture reform
    (Governance, Incentive systems, Assessment and Feedback mechanisms)
  • • Introduction to international regulation
    (roles of regulator, regulatory powers, different international regulatory models, latest market trends)
  • • Regulatory objectives and relevant mandates
      • Personal Data (Privacy) Ordinance
      • EU General Data Protection Regulation (GDPR)
      • Code of Banking Practice
      • Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission
      • Common Reporting Standards (CRS)
  • • Supervisory approach and Manager-In-Charge (MIC) Regime
      • Specific overview of the MIC regime and the compliance implications upon AIs in Hong Kong
  • • Formulation of internal policies, standards and guidelines
      • An overview of best practices in the implementation of internal governance documents (including internal policies, standards and guidelines) to ensure compliance with regulatory frameworks
  • • Registration and licensing requirements, including listing rules (for listed AIs)
      • The process that needs to be undertaken to ensure compliance with registration and licensing regulations
  • • Examples of regulatory breaches associated with operational risk incidents
  • • Case studies, best practices and challenges associated with adapting to regulatory changes in the banking industry