Certified Risk and Compliance Training

The International Association of Risk and Compliance Professionals (IARCP) develops and maintains three certification programs and many tailor-made training programs for directors, executive managers, professionals working for banks and financial organizations, consultants, vendors, service providers, auditors and legal counsels around the world. Subject matter experts review and update this body of knowledge.

For instructor-led training, you may contact Lyn Spooner at lyn@risk-compliance-association.com explaining what you need, and we will contact you as soon as possible.


Discover 10 amazing CRCMP Jobs and what it takes to get hired
Which factors matter?

November 2014

Download the E-book (no registration needed).

I hope you will enjoy it.

Best Regards,

George Lekatis
President of the IARCP
General Manager, Compliance LLC
1200 G Street NW Suite 800
Washington DC 20005, USA
Tel: (202) 449-9750
Email: lekatis@risk-compliance-association.com
Web: www.risk-compliance-association.com
HQ: 1220 N. Market Street Suite 804
Wilmington DE 19801, USA
Tel: (302) 342-8828


First Program
Certified Risk and Compliance Management Professional (CRMCP)

This program has been designed to provide with the knowledge and skills needed to understand and support regulatory compliance and enterprise wide risk management. The course provides with the skills needed to pass the Certified Risk and Compliance Management Professional (CRCMP) exam.

Target Audience:
The CRCMP certification program is beneficial to:
- Risk managers, employees, auditors and consultants
- Compliance managers, employees, auditors and consultants
- Senior managers involved in risk and compliance management
- Risk and compliance management vendors, suppliers and service providers

Course Synopsis:

PART A: COMPLIANCE WITH LAWS AND REGULATIONS, AND RISK MANAGEMENT

  • Introduction
  • Regulatory Compliance and Risk Management
  • Definitions, roles and responsibilities
  • The role of the board of directors, the supervisors, the internal and external auditors
  • The new international landscape and the interaction among laws, regulations, and standards
  • The difference between a best practice and a regulatory obligation
  • Benefits of an enterprise wide compliance program
  • Compliance culture: Why it is important, and how to communicate the obligations
  • Policies, workplace ethics, risk and compliance policies, procedures and the code of conduct
  • Privacy and information security
  • Handling confidential information
  • Conflicts of interest
  • Use of organizational property
  • Fair dealings with customers, vendors and competitors
  • Reporting ethical concerns
  • The definition of Governance, Risk and Compliance
  • The need for Internal Controls
  • Understand how to identify, mitigate and control risks effectively
  • Approaches to risk assessment
  • Qualitative, quantitative approach
  • Integrating risk management into corporate governance and compliance

PART B: THE FRAMEWORKS

  • Internal Controls, COSO, the Internal Control Integrated Framework by the COSO committee
  • Using the COSO framework effectively
  • The Control Environment
  • Risk Assessment
  • Control Activities
  • Information and Communication
  • Monitoring
  • Effectiveness and Efficiency of Operations
  • Reliability of Financial Reporting
  • Compliance with applicable laws and regulations
  • IT Controls
  • Program Development and Program Change
  • Deterrent, Preventive, Detective, Corrective Controls
  • Recovery, Compensating, Monitoring and Disclosure Controls
  • Layers of overlapping controls
  • COSO Enterprise Risk Management (ERM) Framework
  • Is COSO ERM necessary for compliance?
  • COSO and COSO ERM
  • Internal Environment
  • Objective Setting
  • Event Identification
  • Risk Assessment
  • Risk Response
  • Control Activities
  • Information and Communication
  • Monitoring
  • The two cubes
  • Objectives: Strategic, Operations, Reporting, Compliance
  • ERM – Application Techniques
  • Core team preparedness
  • Implementation plan
  • Likelihood
  • Impact
  • COBIT - the framework that focuses on IT
  • Is COBIT needed for compliance?
  • COSO or COBIT?
  • Corporate governance or financial reporting?
  • Executive Summary
  • Management Guidelines
  • The Framework
  • The 34 high-level control objectives
  • What to do with the 318 specific control objectives
  • COBIT Cube
  • Maturity Models
  • Critical Success Factors (CSFs)
  • Key Goal Indicators (KGIs)
  • Key Performance Indicators (KPIs)
  • How to use COBIT for compliance

PART C: SARBANES OXLEY

  • The Sarbanes Oxley Act
  • The Need
  • US Federal Legislation: Financial reporting or corporate governance?
  • The Sarbanes-Oxley Act of 2002: Key Sections
  • SEC, EDGAR, PCAOB, SAG
  • The Act and its interpretation by the SEC and the PCAOB
  • PCAOB Auditing Standards: What we need to know
  • Management's Testing
  • Management's Documentation
  • Reports used to Validate SOX Compliant IT Infrastructure
  • Documentation Issues Sections
  • 302, 404, 906: The three certifications
  • Sections 302, 404, 906: Examples and case studies
  • Management's Responsibilities
  • Committees and Teams
  • Project Team – Section 404
  • Disclosure Committee
  • Audit Committee
  • Report to the Board of Directors
  • Control Deficiency
  • Deficiency in Design
  • Deficiency in Operation
  • Significant Deficiency
  • Material Weakness
  • Is it a Deficiency, or a Material Weakness?
  • Reporting Weaknesses and Deficiencies
  • Examples
  • Case Studies
  • Public Disclosure Requirements
  • Real Time Disclosures on a rapid and current basis?
  • Whistleblower protection
  • Rulemaking process
  • Companies Affected
  • International companies
  • Foreign Private Issuers (FPIs)
  • American Depository Receipts (ADRs)
  • Employees Affected
  • Effective Dates

PART D: BASEL II / BASEL III

  • The Basel Capital Accords
  • Realigning the regulation with the economic realities of the global banking markets
  • New capital adequacy framework replaces the 1988 Accord
  • Improving risk and asset management to avoid financial disasters
  • "Sufficient assets" to offset risks
  • The technical challenges for both banks and supervisors
  • How much capital is necessary to serve as a sufficient buffer?
  • The three-pillar regulatory structure
  • Purposes of Basel
  • Pillar 1: Minimum capital requirements
  • Credit Risk – 3 approaches
  • The standardized approach to credit risk
  • Claims on sovereigns
  • Claims on banks
  • Claims on corporates
  • The internal ratings-based (IRB) approaches to credit risk
  • Some definitions:
  • PD - The probability of default,
  • LGD - The loss given default,
  • EAD - Exposure at default,
  • M – Maturity
  • 5 classes of assets
  • Pillar 2: Supervisory review
  • Key principles
  • Aspects and issues of the supervisory review process
  • Pillar 3: Market discipline
  • Disclosure requirements
  • Qualitative and Quantitative disclosures
  • Guiding principles
  • Employees Affected
  • Effective Dates
  • Operational Risk
  • What is operational risk
  • Legal risk
  • Information Technology operational risk
  • Operational, operations and operating risk
  • The evolving importance of operational risk
  • Quantification of operational risk
  • Loss categories and business lines
  • Operational risk measurement methodologies
  • Identification of operational risk
  • Operational Risk Approaches
  • Basic Indicator Approach (BIA)
  • Standardized Approach (SA)
  • Alternative Standardized Approach (ASA)
  • Advanced Measurement Approaches (AMA)
  • Internal Measurement Approach (IMA)
  • Loss Distribution (LD)
  • Standard Normal Distribution
  • “Fat Tails” in the normal distribution
  • Expected loss (EL), Unexpected Loss (UL)
  • Value-at Risk (VaR)
  • Calculating Value-at Risk
  • Stress Testing
  • Stress testing and Basel AMA
  • Advantages / Disadvantages
  • Operational Risk Measurement Issues
  • The game theory
  • The prisoner’s dilemma – and the connection with operational risk management
  • Operational risk management
  • Operational Risk Management Office
  • Key functions of Operational Risk Management Office
  • Key functions of Operational Risk Managers
  • Key functions of Department Heads
  • Internal and external audit
  • Operational risk sound practices
  • Operational risk mitigation
  • Insurance to mitigate operational risk
  • Basel II and other regulations
  • Capital Requirements Directive (CRD)
  • Aligning Basel II operational risk and Sarbanes-Oxley 404 projects
  • Common elements and differences of compliance projects
  • New standards
  • Disclosure issues
  • Multinational companies and compliance challenges

What is Basel III?
The Basel III papers
Was Basel II responsible for the market crisis?
Introduction to the Basel III Amendments
The Financial Stability Board (FSB), the G20 and the Basel III framework
The New Basel III Principles for risk management and corporate governance
The key areas where the Basel Committee believes the greatest focus is necessary

  1. Board practices
  2. Senior management
  3. Risk management and internal controls
  4. Compensation
  5. Complex or opaque corporate structures
  6. Disclosure and transparency

Sound Practices for the Management and Supervision of Operational Risk
The 9 principles

PART E: DESIGNING AND IMPLEMENTING A RISK AND COMPLIANCE PROGRAM

  • Designing and Implementing an enterprise wide Risk and Compliance Program
  • Designing an Internal Compliance System
  • Compliance programs that withstand scrutiny
  • How to optimize organizational structure for compliance
  • Documentation
  • Testing
  • Training
  • Ongoing compliance with laws and regulations
  • Compliance Monitoring
  • The company and other stakeholders
  • Managing the regulators and change in regulations
  • International and national regulatory requirements
  • Regulatory compliance in Europe
  • Regulatory compliance in the USA
  • What is different
  • The GCC countries
  • The Caribbean
  • The Pacific Rim
  • Common elements and differences of compliance projects
  • New standards
  • Disclosure issues
  • Multinational companies and compliance challenges

Second Program
Certified Information Systems Risk and Compliance Professional (CISRCP)

The program has been designed to provide with the knowledge and skills needed to understand international standards and best practices in IT risk management and information security. Also, to provide with the knowledge and skills needed to pass the CISRCP exam and become a Certified Information Systems Risk and Compliance Professional (CISRCP).

Target Audience:
The CISRCP certification program is beneficial to:

- IT managers, employees, auditors and consultants
- Information security managers, employees, auditors and consultants
- Risk and compliance managers, employees, auditors and consultants
- Network, systems and security administrators
- Incident handlers and incident response professionals
- Threat analysts
- Vulnerability assessment personnel
- IT and information security operations engineers and analysts
- IT and information security vendors, suppliers and service providers

This course is intended for employers demanding qualified IT and Information Security professionals that meet the fit and proper requirements in risk and compliance management.

Course Synopsis:

Part 1 - Information Technology and Information Security
Information Technology: The engine that drives the economy
Information security risk
Managing information security risk
The dark side of the threat landscape
Types of threat information: Strategic (S), Tactical (T), Operational (O)
Threat intelligence is becoming more important
Malware (worms/trojans and Potentially Unwanted Programs – PUPs)
Web-based attacks
Web application attacks / Injection attacks
Botnets
Denial of Service
Spam
Phishing
Exploit Kits
Data Breaches
Insider threat
Information leakage
Identity theft/fraud
Cyber espionage
Ransomware, Rogueware, Scareware
Strategic web compromise (watering hole attack)
Cyber-opportunity makes the thief

Overview of Threat Agents
Cybercriminals
Online Social Hackers
Hacktivists
Nation States
Corporations
Employees (current, ex, internal and external)
Cyber Fighters
Cyber Terrorists
Script Kiddies

Emerging Threat Landscape (ETL)
Explaining Information Security to employees and end users
Information Security Awareness

Part 2 - Critical infrastructure protection: International standards, principles and best practices
In the USA
Introduction
Executive Order 13587 - Structural Reforms to Improve the Security of Classified Networks and the Responsible Sharing and Safeguarding of Classified Information
Executive Order 13636 - Improving Critical Infrastructure Cybersecurity
Presidential Policy Directive (PPD) 21 - Critical Infrastructure Security and Resilience
NIST Cybersecurity Framework

In the European Union
EU Cybersecurity plan to protect open internet and online freedom and opportunity
European Cybercrime Centre (EC3)
Cybersecurity Strategy of the European Union
1. Achieving cyber resilience
2. Drastically reducing cybercrime
3. Developing cyberdefence policy and capabilities related to the Common Security and Defense Policy (CSDP)
4. Develop the industrial and technological resources for cybersecurity
5. Establish a coherent international cyberspace policy for the European Union and promote core EU values
Directive 2008/114/EC of 8 December 2008 on the identification and designation of European critical infrastructures and the assessment of the need to improve their protection

Part 3 – Risk Management and Compliance
Introduction
Regulatory Compliance and Risk Management
Definitions, roles and responsibilities
The role of the board of directors, the supervisors, the internal and external auditors
The new international landscape and the interaction among laws, regulations and standards
The difference between a best practice and a regulatory obligation
Basel Committee, corporate governance principles for banks (2014)
Financial Stability Board, Thematic Review on Risk Governance
OECD Principles of Corporate Governance
Benefits of an enterprise wide compliance program
Compliance culture: Why it is important, and how to communicate the obligations
Policies, Workplace Ethics, Risk and Compliance
Policies, procedures and the ethical code of conduct
Privacy and information security
Handling confidential information
Conflicts of interest
Use of organizational property
Fair dealings with customers, vendors and competitors
Reporting ethical concerns
The definition of Governance, Risk and Compliance
The need for Internal Controls
Understand how to identify, mitigate and control risks effectively
Approaches to risk assessment
Qualitative, quantitative approach
Integrating risk management into corporate governance and compliance
IT, Information Security, business risk and compliance
Case Study: IW-130, Security Measures of Information Warfare
Australia/New Zealand Standard 4360
Risk Management Guide for Information Technology Systems, NIST Special Publication 800-30
Threats and Vulnerabilities
Outsourcing and Risk Management

Part 4 – The Frameworks: COSO, COSO ERM, COBIT
Internal Controls - COSO, The Internal Control Integrated Framework by the COSO committee
Using the COSO framework effectively
The Control Environment
Risk Assessment
Control Activities
Information and Communication
Monitoring
Effectiveness and Efficiency of Operations
Reliability of Financial Reporting
Compliance with applicable laws and regulations
IT Controls
Program Change
Deterrent, Preventive, Detective, Corrective Controls
Recovery, Compensating, Monitoring and Disclosure Controls
Layers of overlapping controls
COSO Enterprise Risk Management (ERM) Framework
Is COSO ERM necessary for compliance?
COSO and COSO ERM
Internal Environment
Objective Setting
Event Identification
Risk Assessment
Risk Response
Control Activities
Information and Communication
Monitoring
The two cubes
Objectives: Strategic, Operations, Reporting, Compliance
ERM – Application Techniques
Core team preparedness
Implementation plan
Likelihood Risk Ranking
Impact Risk Ranking
COSO 2013 Internal Control Integrated Framework
What is different now?
Components and Principles
Significant changes to the original framework

COBIT - the framework that focuses on IT
Is COBIT needed for compliance?
COSO or COBIT?
Corporate governance, financial reporting
COBIT, Executive Summary
Management Guidelines
The Framework
The 34 high-level control objectives
What to do with the 318 specific control objectives
COBIT Cube
Maturity Models
Critical Success Factors (CSFs)
Key Goal Indicators (KGIs)
Key Performance Indicators (KPIs)
How to use COBIT for compliance
The alignment of frameworks
COSO and COBIT
COSO ERM and COBIT
ITIL and COBIT
ISO/IEC 17799:2000 and COBIT
ISO/IEC 15408 and COBIT
Software and Spreadsheets
Is software necessary for risk and compliance?
Is software needed?
When and why
How large is your organization?
Is it geographically dispersed?
How many processes will you document?
Are there enough persons for that?
Selection process
Spreadsheets
Certain spreadsheets must be considered applications
Development Lifecycle Controls
Access Control (Create, Read, Update, Delete)
Integrity Controls
Change Control
Version Control
Documentation Controls
Continuity Controls
Segregation of Duties Controls
Spreadsheets – Errors
Spreadsheets and material weaknesses
Third-party service providers and vendors
Redefining outsourcing
Key risks of outsourcing
What is needed from vendors and service providers
SAS 70
Type I, II reports
Advantages of SAS 70 Type II
Disadvantages of SAS 70 Type II

Part 5 - NIST Special Publication 800-39
Components of risk management
Multitiered risk management
Tier 1 – Organization view
Tier 2 – Mission / business process view
Tier 3 – Information systems view
Trust and Trustworthiness
Organizational Culture
Relationship among key risk concepts
Framing risk
Assessing risk
Responding to risk
Monitoring risk
Glossary
Governance models
Trust models

Part 6 – Assessing security and privacy controls
Security and Privacy Control Assessment
Assessments within the System Development Life Cycle
Strategy for conducting control assessments
Building an effective assurance case
Assessment procedures
Conducting effective security and privacy control assessments
Preparing for security and privacy control assessments
Developing security and privacy assessment plans
Determine which security or privacy controls are to be assessed
Tailor assessment procedures
Assessment method and object-related considerations
Depth and coverage-related considerations
Common control-related considerations
Reuse of assessment evidence-related considerations
Changing conditions associated with security controls and privacy controls
Amount of time that has transpired since previous assessments
Degree of independence of previous assessments
External information system-related considerations
Optimize selected assessment procedures for maximum efficiency
Finalize assessment plan and obtain approval to execute plan
Analysing assessment report results

Part 7 - CERTs (Computer Emergency Response Teams) and Security Incident Response
Introduction
Incident Handling Process
Incident report
Registration
Triage
Incident verification
Incident initial classification
Incident assignment
Incident resolution
Data analysis
Resolution research
Actions proposed
Action performed
Eradication and recovery
Incident closure
Final classification
Archiving
Post-analysis

Processing actionable information
Collection
Sources of information: internal vs. external
Level of automation
Recurrence
Consumption model
Granularity
Evaluation of data sources
Collection
Preparation
Parsing
Normalization
Aggregation
Enrichment
Automation
Storage
Retention time
Scale
Dataset management
Technologies
Triage and results
Metrics
Distribution

Part 8 - The Sarbanes Oxley Act: New international standards
The Need
The Sarbanes-Oxley Act of 2002: Key Sections
SEC, EDGAR, PCAOB, SAG
The Act and its interpretation by SEC and PCAOB
PCAOB Auditing Standards: What we need to know
Management's Testing
Management's Documentation
Reports used to Validate SOX Compliant IT Infrastructure
Documentation Issues
Sections 302, 404, 906: The three certifications
Sections 302, 404, 906: Examples and case studies
Management's Responsibilities
Committees and Teams
Project Team
Steering Committee
Disclosure Committee
Certifying Officers
Audit Committee
Report to the Board of Directors
Control Deficiency
Deficiency in Design
Deficiency in Operation
Significant Deficiency
Material Weakness
Is it a Deficiency, or a Material Weakness?
Reporting Weaknesses and Deficiencies
Examples
Case Studies
Public Disclosure Requirements
Real Time Disclosures on a rapid and current basis?
Whistleblower protection
Rulemaking process
Companies Affected
International companies
Foreign Private Issuers (FPIs)
American Depository Receipts (ADRs)
Employees Affected
Effective Dates
IT and Information Security Control Objectives and Control Framework

Part 9 and 10 - Basel II and the Basel III amendment
Realigning the regulation with the economic realities of the global banking markets
New capital adequacy framework replaces the 1988 Accord
Improving risk and asset management to avoid financial disasters
"Sufficient assets" to offset risks
The technical challenges for both banks and supervisors
How much capital is necessary to serve as a sufficient buffer?
The three-pillar regulatory structure
Purposes of Basel
Pillar 1: Minimum capital requirements
Credit Risk – 3 approaches
The standardized approach to credit risk
Claims on sovereigns
Claims on banks
Claims on corporates
The internal ratings-based (IRB) approaches to credit risk
Some definitions:
PD - The probability of default,
LGD - The loss given default,
EAD - Exposure at default,
5 classes of assets
Pillar 2: Supervisory review
Key principles
Aspects and issues of the supervisory review process
Pillar 3: Market discipline
Disclosure requirements
Qualitative and Quantitative disclosures
Guiding principles
Employees Affected
Effective Dates
Operational Risk
Legal risk
Information Technology operational risk
Operational, operations and operating risk
The evolving importance of operational risk
Quantification of operational risk
Loss categories and business lines
Operational risk measurement methodologies
Identification of operational risk
Operational Risk Approaches
Basic Indicator Approach (BIA)
Standardized Approach (SA)
Alternative Standardized Approach (ASA)
Advanced Measurement Approaches (AMA)
Internal Measurement Approach (IMA)
Loss Distribution (LD)
Standard Normal Distribution
“Fat Tails” in the normal distribution
Expected loss (EL), Unexpected Loss (UL)
Value-at Risk (VaR)
Calculating Value-at Risk
Stress Testing
Stress testing and Basel
(AMA) Advantages / Disadvantages
Operational Risk Measurement Issues
The game theory
The prisoner’s dilemma – and the connection with operational risk management
Operational risk management
Operational Risk Management Office
Key functions of Operational Risk Management Office
Key functions of Operational Risk Managers
Key functions of Department Heads
Internal and external audit
Operational risk sound practices
Operational risk mitigation
Insurance to mitigate operational risk
IT and Information Security in the Basel framework and projects
Basel II and other regulations
Capital Requirements Directive (CRD)
Aligning Basel II operational risk and Sarbanes-Oxley 404 projects
Common elements and differences of compliance projects
New standards
Disclosure issues
Multinational companies and compliance challenges
Basel III: The New Risk Management and Corporate Governance Standards
Introduction to the Basel III Amendments
Sound corporate governance principles
Financial Stress Testing
Use of stress testing and integration in risk governance

Part 11 - Designing and implementing an enterprise wide Risk and Compliance Program
Designing an internal compliance system
Compliance programs that withstand scrutiny
How to optimize organizational structure for compliance
Documentation
Testing
Training
Ongoing compliance with laws and regulations
Compliance Monitoring
The company and other stakeholders
Managing change in regulations
International and national regulatory requirements
Regulatory compliance in Europe
Regulatory compliance in the USA
What is different
The GCC countries
The Caribbean
The Pacific Rim
Common elements and differences of compliance projects
New standards
Disclosure issues
Multinational companies and compliance challenges

Part 12 - Reference: Threat Landscape and Good Practice Guide for Smart Home and Converged Media
Smart home infrastructure including converged media and television
Valuable assets in smart homes and
converged media
Threats
Smart home assets exposure to cyber threats
Threat agents