Hong Kong Monetary Authority (HKMA) includes the Certificate in Operational Risk (CORM) in its Enhanced Competency Framework for Operational Risk (ECF-ORM)

First regulator formally acknowledges Institute of Operational Risk Certificate

The Hong Kong Monetary Authority recently published its guide to: Enhanced Competency Framework for Operational Risk (ECF-ORM, December 2020).  The Institute of Operational Risk (IOR) is delighted that its flagship qualification, the Certificate in Operational Risk, has been included as a recommended qualification for operational risk management professionals in banking and financial services.

The ECF-ORM is a collaborative effort of the HKMA, the Hong Kong Institute of Bankers (HKIB) and the banking sector in establishing a set of common and transparent competency standards for raising the professional competence of relevant practitioners working in the operational risk management function of authorised institutions (AIs).

The framework aims to facilitate talent development and help enhance the professional competencies of banking staff engaged in operational risk management in Hong Kong.

Details of the ECF-ORM, including its scope of application, competency standards, qualification structure, certification and grandfathering arrangements, and continuing professional development (CPD) requirements are set out here .

Dominic Wu, Chair, IOR HK Chapter IOR says:

“We’re delighted that CORM has been listed as a recommended qualification in the ECF-ORM. CORM helps to equip banking and financial services practitioners with the technical skills and professional knowledge required in the day-to-day activities of the operational risk management function.

Now more, than ever, risk management professionals are firmly in the spotlight as the pandemic puts pressure on business operations and the related risks it brings such as: People, cyber, reputation, supply chain and other risks as they affect operations, particularly in regulated markets.”

Operational risk management is vital in preventing, managing, and assessing the risk of direct or indirect loss resulting from inadequate or failed internal processes, people, systems or external events. In recent years, the importance of operational risk management is exemplified by the greater variety and severity of business disruptions, frauds or other operational incidents.

Such operational events require organisations to be nimble, responsive, and adapt to rapidly evolving market conditions. Against such a background, there is a clear demand for banking practitioners to be equipped with the required skills and knowledge to properly manage operational risk and to facilitate the development of the required policies, procedures, and controls accordingly.

The ECF-ORM is a non-statutory framework which sets out the common and core competences required of operational risk management practitioners in Hong Kong’s banking industry. The objectives of the ECF-ORM are twofold:

(a) To develop a sustainable talent pool of operational risk management practitioners for the banking industry; and

(b) To raise the professional competence of existing operational risk management practitioners in the banking industry.

The internationally recognised CORM qualification provides students with an introduction to operational risk management including the tools and techniques used and how it fits into the wider risk management of the firm. It requires 130-150 hours of study, with an exam at the end.

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