BAN504 – Syllabus

Course Code: BAN 504 – 3 CREDITS

Course Name: OPERATIONAL MANAGEMENT in financial institutions

LECTURER: Bülent Şenver

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Aim of the Course

The operational risk management in banks and financial institutions became an important management issue. The losses arising from operational errors, mistakes, fraud or defalcation and system or technology failures in banks may result in loss of capital. Supervisory authorities in all countries require that banks and financial institutions establish and use proper operations risk management systems and procedures.

In this course, students will understand the basic operational risks in banks and financial institutions.  Learn the different techniques to evaluate the operational risks and how to control the possible loss making processes in the banks. Learning process will also cover relevant case studies.

Learning Outcomes

Upon completion of this course students will understand the basic concepts and methodologies of operational risk management in banks and financial institutions and understand the different problems faced during transaction processing and electronic banking and how to protect the bank from possible losses.

Teaching Method

Class lectures, web based research.

Text Book

Class Notes, Printed Materials from different sources and other Reading Materials to be assigned from related Web Sites

Supplementary Reading

To be assigned by the instructor during the course

Student Evaluation

Project Paper 20% Mid-Term 30% Final Exam 50%

Course Outline

Week 1 Banking and Financial Institutions System

Week 2 Banking Operations Types and Functionalities

Week 3 Operations Risk management methodology and concepts

Week 4 Internal Control and Security issues in Bank Operations Retail Banking Operations

Week 5 Corporate Banking Operations

Week 6 Retail Banking Operations

Week 7 Technology Risk Types and Management of IT Risks

Week 8 Mid-Term Examination

Week 9 Control and Prevention of Fraud, Defalcation, Theft, Robbery and natural disasters

Week 10 Presentation of Project Papers

Week 11 Presentation of Project Papers

Week 12 Internal Control Methodologies to minimize operational risks

Week 13 Case Study

Week14 Basel II (CAD) Operational Risk Management concepts and Capital Requirements