RC136: Risk Aggregation in Practice

Agenda:

• Business and legal drivers for risk aggregation
  
  
• Risk aggregation requirements in the new IDW PS 340
  
  
• Requirements resulting from DIIR Audit Standard No. 2: Audit of the risk management system by internal audit
  
  
• Quantitative description of risks
  
  
• Development of a risk capacity concept, determination of risk coverage potential in practice
  
  
• Important distribution functions in practice
  
  
• Development of a prototype for risk aggregation
  
  
• Variance-covariance approach versus stochastic simulation
  
  
• Consideration of dependencies in modeling
  
  
• Relevant risk and performance measures in practice (VaR, ES, RORAC/RAROC etc.)
  
  
• Sensitivity analysis for prioritization of measures including measure simulation
  
  
• Practical examples from industry and trade
  
  
• Software solutions overview
  
  

Objectives:

Learn in the seminar RC136 Risk Aggregation in Practice about practical tools and methods for risk aggregation and the development of a risk-bearing capacity concept. The workshop is based on various case studies and offers an efficient and well-structured introduction to the topic.

Target audience:

Risk Managers, Managing Directors, Auditors, Employees from the fields of Controlling, Information Security, Security, Quality Management, and Internal Audit.

Prerequisites:

No prior knowledge is required for this seminar.

Description:

Risk Quantification and Risk Aggregation (Risk Simulation) are essential for Controlling, Risk Management, as well as Corporate, Strategy, and Investment Evaluation. Existential threats can also result from the interaction of multiple risks, which, when considered in isolation, are not existentially threatening. Therefore, when assessing whether an existential threat exists, an aggregation of risks is necessary.

In the practical seminar RC136 Risk Aggregation in Practice, well-founded methods for the aggregation of risks are presented and applied using "Case Studies". Additionally, a practice-oriented approach to developing a risk-bearing capacity concept is presented to meet, among other things, the requirements of Audit Standard 340 (IDW PS 340) as well as DIIR Audit Standard No. 2 (Audit of the Risk Management System by Internal Audit).

All participants receive comprehensive documentation in printed and electronic form (USB stick). Additionally, all participants receive the book "Success Factor Risk Management 4.0 - Practical Handbook for Industry and Trade" (Romeike/Hager, 4th Edition, Springer Verlag 2020) as well as a certificate from the Risk Academy.