Risks & Controls in Securities Operations


The current environment and recent history has shown the dangers of ineffective or defective Operational Risk Control. Consequences can be massive in terms of financial losses, reputation besides personal career prospects.


Regulators are now also paying much more attention to Risks and Controls in Operations in assessing a companys safety, security, and hence Regulatory Capital as required under Basle 2.

Recent events have also made Regulators far tougher and less forgiving to subjects shortcomings and lapses.


This course within two days provides a good Risk and Controls awareness for operations. It helps the early identification of risks, an application of appropriate and timely controls, and helps reduce the possible escalation of dangerous situations within normal day-to-day activity. 


It also helps all staff within Securities Operations to have a common and consistent outlook towards risks and controls so minimising financial losses and maintaining the high quality service levels clients now expect as a matter of course. 




  • Back Office and Middle Office Managers and Staff
  • Internal Audit, Risk and Accounting Executives
  • Settlement and Custody Staff
  • IT and Systems Executives developing or supporting systems in this area
  • Front Office and Compliance executives
  • Custodians, Bankers & Brokers


Participants need  to have at least 6 months work experience in or with  Back Office or Operations or Custody areas (eg areas connecting to the Back Office or Operations) and to have a basic Securities knowledge.




Trade Lifecyle Overview

Order Management


-Trade execution

-Trade capture

-Trade enrichment

-Trade agreement

-Settlement instructions

-Pre-value date statuses

-Failed trades

-Trade settlement

-Static Data


Primary Risks in the Trade Lifecycle

Focus on each trade lifecycle component to identify risks giving rise to monetary loss and reputation loss, for reasons such as:

-Inaccurate securities static data

-Trading position differences between FO & BO


-Unconfirmed trades with counterparties


-Late settling trades


Primary Risks in other Operational Activities


Focus on a variety of non trade lifecycle activities to identify risks, for reasons such as:


-Safe custody holdings in incorrect accounts

-Free of payment settlement

-Unnecessary securities borrowing

-Inaccurate positions resulting from Corporate Actions


Primary Controls



-Four Eyes Checking



-Segregation of Duties




Detailed Risk Analysis


Delving deep into numerous operations scenarios, pre-defined problems will be analysed in order to:


-State the specific risk

-The probable cause


-The ideal control


-How the control is to operate

Todays Date:

Duration 2 days
Available as an in-house course. Details on request.

Investment Education PLC
45 Old Hall Road, Manchester M7 4JF, United Kingdom
Tel:+44 (0)161 832 3800
Email: mail@investmentEducation.net
Registered in England Number 2129160
VAT Registered Number GB 480 2112 85

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