Finance & Accounts

FA 15 Internal Controls for Financial Institutions

Internal Controls for Financial Institutions

Minimise operational risks and ensure compliance through appropriate processes and controls

Accredited by: LONDON INSTITUTE OF SKILLS DEVELOPMENT SIGNATURE PROGRAMME

Who should attend?

  • Regulatory authorities in Banking, Insurance, Pensions and Capital Markets
  • Executive and non-executive Board and committee members
  • Company secretaries
  • Shareholder representatives
  • Senior managers and executives
  • Corporate lawyers
  • Marketing specialists
  • Institutional investors
  • Junior Managers, Fresh Graduates & Final Semester Students to acquire a promising career in a reputable organization.
Course Code:F/A.15
Subject:Finance
Course Fee:£385
Duration:4 Days

Learning Objectives

By the end of the course delegates will be able to:

  • Describe key risk management and internal control concepts
  • Apply  the main industry frameworks and standards which influence internal controls
  • Assess the effectiveness of their organisations internal controls
  • Demonstrate to and guide executives and management in the establishment of an appropriate control environment
  • Understand the effective usage of internal controls

Course Content

Internal Controls in the Context of Today’s Corporate Governance

  • What is Corporate Governance?
  • Why is it different for financial institutions?
  • Internal controls as a mechanism for controlling risks
  • Board and senior management responsibilities for internal controls and the establishment of a control culture
  • US Sarbanes Oxley Act 2002 and its requirements for monitoring and annual reporting on internal controls effectiveness

Main Components and Principles of Internal Controls

  • The definition and purpose of internal controls
  • The five components of the original COSO internal controls framework
  • Integration of the original COSO control framework into COSO Enterprise Risk Management framework (ERM)
  • Linking COBIT to COSO – Information technology framework and internal controls

Financial Sector Regulators and Internal Controls

  • The three categories of objectives for internal controls
  • COSO internal controls framework – the expanded 2013 revision
  • The new seventeen principles – practical application to provide comprehensive controls
  • The strong link between Basel II operational risk management and COSO
  • Inherent limitations of internal controls

The Control Environment

  • The vital first step – establishing the management tone at the top and an institution-wide code of conduct reflecting integrity and ethical values
  • Board and management’s delegation of authority
  • Commitment to competence – attracting, developing and retaining the right human resources
  • Performance measures, incentives and rewards

Types of Internal Controls

  • Risk appetite and strategy established by the Board and risk response strategies
  • Control activities, internal controls, responsibilities and uses through the eyes of different stakeholders
  • Inherent and residual risks
  • Reporting and assurance