Operational risk management is a key issue for banks. At UBP, training provided by the ISFB has raised awareness of regulatory and practical issues, reinforcing the bank's culture of vigilance and compliance.

Mr. Rolland, you recently approached ISFB for a training course designed to raise your teams' awareness of operational risks. Can you tell us more about the specific needs that prompted this initiative?

Raising awareness of operational risks is a fundamental and timeless challenge for any banking establishment. This approach is not the result of a specific event, but rather of taking a step back in a global context, and multiple factors.

Indeed, regulations continue to evolve, and our teams are regularly trained to adapt to these changes. However, it is just as essential to provide regular reminders of the associated risks, both to those involved in operational activities and to managers, each of whom plays a key role in managing and mitigating these risks.

Furthermore, Union Bancaire Privée (UBP) is constantly growing; we are constantly adjusting our processes and controls to adapt to this dynamic environment, and risk training is one of the necessary elements to accompany this evolution.

Mr. Finini, you are the ISFB Program Director and also an ISFB lecturer. In the latter capacity, you recently delivered this training course in-house at UBP Bank. What was the process involved in setting up this course?

I've been working with the ISFB for ten years, and I know how important it is for the institute to provide quality training for all its members. When the bank contacted the ISFB, the latter analyzed the expected objectives and selected me from among the 150 lecturers available; I was delighted to be able to respond very quickly in a positive manner, as the chosen subject - operational risks - is part of my range of skills. A working session with Mr Rolland and UBP's HR department was soon set up. During this meeting, the outlines of the training to be given were defined and we were able, together with the ISFB's Managing Director, Mr Mathias Baitan, to provide UBP with a syllabus (specifications) for the training. We then defined the working groups and the timetable. In this particular case, the aim was to provide training for all employees in Mr. Rolland's departments, requiring 10 sessions of 4 hours each.

Mr. Finini, what are the key elements you taught in this training course?

It was interesting to be able to provide all participants with a clear explanation of the importance of controlling operational risks, through a detailed review of the regulations in place to prevent these risks. These require financial establishments to put in place structured and comprehensive governance and documentation. It was then essential to highlight the impact of these risks, through selected examples of bad practice. Finally, the discussion focused on the means to be implemented to prevent these risks, or to mitigate them should they occur.

Mr. Finini, what tools or methodologies would you recommend for identifying and effectively managing operational risks in a banking environment?

First of all, employees need to be made aware that regulators are taking a close interest in this issue, which therefore goes beyond the strictly internal framework of a bank. Knowing the main rules imposed by the regulator, whether Swiss or foreign, is essential. It is therefore essential to set up a regulatory watch to ensure that you are always up to date with the authorities' expectations. Secondly, it is essential to transform these external rules into internal regulations and organization, not only to respond to the authorities, but above all to instill a risk prevention culture within the company, through correct documentation of identified risks, their evaluation, mitigation measures and a periodic review schedule for these same risks. Finally, a periodic reminder of the rules of caution and the importance of vigilant work by employees is also recommended.

Mr. Rolland, how has this training benefited you and your teams? Why do you think it's crucial for a bank to invest in operational risk training?

For any training course, I always make a point of integrating a theoretical dimension, which of course establishes the framework, in this case regulatory, but also a practical approach, which we illustrated with concrete cases encountered within UBP and in industry in general. Mr. Finini was able to adapt the course content to harmoniously combine these two aspects of training.

Operational risk is an integral part of the day-to-day work of support teams, who deal with significant volumes and amounts. The danger lies in routine, which, by definition, could lead us to neglect certain control and reporting fundamentals. This is why it's important to provide a reminder. For example, by integrating operational risk awareness, we ensure that everyone in the company is aware of the stakes and responsibilities involved. This not only enables us to comply with regulatory standards, but also to position ourselves as a trusted player in the eyes of our customers.

Anthony Rolland

Group Head of Operations and General Services (UBP)

Lino Finini

Program Director (ISFB) and Advisor