Overview

With the aim of supporting capacity building and talent development for banking professionals, the Hong Kong Monetary Authority (HKMA) has been working together with the banking industry to introduce an industry-wide competency framework - "Enhanced Competency Framework (ECF) for Banking Practitioners.

Since the implementation of ECF in 2018, various programmes for different job functions in banking industry have been developed and integrated into The Hong Kong Institute of Bankers' ("HKIB") flagship Certified Banker (CB) Programme which offer generalist, specialist, and strategic topics. The rationale for putting all programme under one professional banking qualification is to promote an industry-based common qualifications benchmark. While ECF programmes offer "role-based" knowledge and certification to Relevant Practitioners (RPs), CB is offering a vocational qualification pathway for further career advancement, being continuously enhanced to nurture more holistic banking professionals and ultimately, supporting the industry to develop a continuous learning culture and a sustainable talent pool so as to maintain the competitiveness of Hong Kong as an international financial centre.

The Enhanced Competency Framework on Operational Risk Management (hereinafter referred to as “ECF-ORM”) is a non-statutory framework which sets out the common and core competences required of operational risk management practitioners in the Hong Kong’s banking industry. The objectives of the ECF-ORM are twofold:

1. to develop a sustainable talent pool of operational risk management practitioners for the banking industry; and

2. to raise the professional competence of existing operational risk management practitioners in the banking industry

Although the ECF-ORM is not a mandatory licensing regime, authorized institutions (AIs) are encouraged to adopt it for purposes including but not limited to:

1. using the ECF-ORM as a benchmark to determine the level of competence required and assess the ongoing competence of relevant employees;

2. supporting relevant employees to attend training programmes and examinations that meet the ECF-ORM benchmark;

3. supporting the continuing professional development (CPD) of relevant employees; AND

4. promoting the ECF-ORM as an industry-recognised qualification, including for recruitment purposes

Please refer to the HKMA Circular on “Enhanced Competency Framework on Operational Risk Management” for details.

Scope of Application

The ECF-ORM is intended to apply to RPs whose primary responsibilities are performing operational risk governance, operational risk identification and assessment, operational risk monitoring and reporting, operational risk control and mitigation, and business resiliency and continuity planning within an AI. The ECF-ORM is aimed at RPs located in the Hong Kong office of an AI performing the operational risk management and business control risk and control functions:

Role 1 - Operational Risk Management (i.e. staff in charge of managing operational risks in the second line of defence) and

Role 2 - Business Function Risk and Control (i.e. staff working at the business units to manage operational risks in the first line of defence)

Competency Standards

The competency standards of the ECF-ORM are set at two levels:

1. Core level – applicable to entry-level and junior-level staff in the operational risk management and business function risk and control with 0-5 years of experience.
2. Professional level – applicable to staff taking up middle-level or senior positions in the operational risk management and business function risk and control with more than 5 years of experience.

Certification

RPs may apply to the HKIB for certification as an Associate Operational Risk Management Professional (AORP) or a Certified Operational Risk Management Professional (CORP) upon completing the below qualifications and fulfilling the minimum relevant work experience requirement.

AORP – (1) has completed the core level training (Modules 1 to 3) and obtained a pass in the relevant examination of each module or (2) grandfathered pursuant to the criteria specified in the Grandfathering section below.

CORP – (1) has completed the professional level training (Module 4) and obtained a pass in the relevant examination of the module on top of the Core Level qualification plus at least 5 years’ relevant work experience in operational risk management, business function risk and control, and/or internal audit (related to operational risk management and controls within an AI) or (2) grandfathered pursuant to the criteria specified in the Grandfathering section below.

Training and examinations

Core Level 

The Core level training programme of the ECF-ORM consists of 3 modules. A core level training award "Advanced Certificate for ECF on Operational Risk Management" will be given to candidates who have completed the core level training (Module 1 to 3) and obtained a pass at the relevant examination of each module. 

Entry Requirement

The Programme is open to members and non-members of the HKIB. Candidates must fulfil the stipulated minimum entry requirements:

• Students of Associate Degree (AD)/ High Diploma (HD) in any disciplines (QF L4); OR
• Equivalent qualifications or above; OR
• Mature applicants with either at least three years of work experience in banking and finance or equivalent with a recommendation from the employer.

Remark: Mature applicants (aged 21 or above) who do not possess the above academic qualifications but with relevant banking experience and recommendation from their employers will be considered on individual merit.

Training Duration and Training Fee

# For Module 1 & Module 2, a digital version of training material (i.e. Study Guide and PPT Slides) will be provided before the training commencement.  Printed version will only be available at an additional cost of  HKD600 (including delivery fee) on request by learners. 

# For Module 3, only a digital version of PPT Slides will be provided before the training commencement.  Printed version will only be available at an additional cost of HKD600 (including delivery fee) on request by learners.  In addition, learners have to purchase two reference books by their own as a part of the essential readings.

Examination Format and Fee

^ HKIB student members can enjoy 25% off training fee discount and 50% off examination fee discount respectively.

Professional Level

The Professional level training programme of the ECF-ORM consists of 1 module.  A professional level training award “Professional Certificate for ECF on Operational Risk Management” will be given to candidates who have completed the professional level training (Module 4) and obtained a pass at the relevant examination of the module on top of the Core Level qualification.

Entry Requirement 

The Programme is open to members and non-members of the HKIB. Candidates must fulfil the stipulated minimum entry requirements:

• Advanced Certificate for ECF on Operational Risk Management (ORM) awarded by HKIB;  OR
• Grandfathered for ECF on Operational Risk Management (Core Level) by HKIB

Training Duration and Fee

# For Module 4, only a digital version of PPT Slides will be provided before the training commencement.  Printed version will only be available at an additional cost of HKD600 (including delivery fee) on request by learners.  In addition, learners have to purchase two reference books by their own as a part of the essential readings.

Examination Format and Fee

^ HKIB student members can enjoy 25% off training fee discount and 50% off examination fee discount respectively.

Please refer to the Programme Handbook and Programme Brochure for more details.

Training and Examination Enrolment

Applicants can submit the application via MyHKIB.

Late entries for training programmes are accepted up to seven days after the stipulated application deadlines. An additional late entry fee of HKD200 applies.

Late entries for examinations are accepted up to 14 days after the stipulated application deadlines. An additional late entry fee of HKD200 applies.

Exemption

RP who has passed the following related training programme(s) is eligible to apply for exemption on Module 1 and / or Module 3 of the ECF-Operational Risk Management Core Level training programme:

Module 1

• Certification in Risk Management Assurance of the Institute of Internal Auditors; or
• Bachelor’s or higher degree in law; or
• Professional Ethics and Compliance module under the Advanced Diploma for Certified Banker (Stage I) of the HKIB; or
• Certified Professional Risk Manager of the Asia Risk Management Institute (ARIMI); or
• Certified Public Accountant of the Hong Kong Institute of Certified Public Accountants (HKICPA);
• Full member of Association of Chartered Certified Accountants (ACCA); or
• Members of overseas accountancy bodies which are eligible for full exemption from the qualification programme for membership admission at the HKICPA under the HKICPA’s reciprocal membership and mutual recognition agreements (as listed on its website).

Module 3

• Operational Risk Manager Certificate of the Professional Risk Managers' International Association (PRMIA); or
• Professional Risk Manager of the PRMIA; or
• Certificate in Operational Risk Management of the Institute of Operational Risk (IOR), which is now a part of the Institute of Risk Management (IRM) Group.

Grandfathering

A RP may be grandfathered on a one-off basis (i.e. within the grandfathering application period) based on his or her years of qualifying work experience and/or professional qualification. Such work experience need not be continuous. The detailed grandfathering requirements are as follows:

Core Level:

Path (i):

• Possessing at least 3 years of relevant work experience in operational risk management, business function risk and control, and/or internal audit (related to operational risk management and controls within an AI); AND

• Employed by an AI at the time of application

OR

Path (ii):

• Completion of one of the following training programmes:

           - Operational Risk Manager Certificate of the PRMIA; or

           - Professional Risk Manager of the PRMIA; or

           - Certificate in Operational Risk Management of the IOR, which is now a part of the IRM Group;

• Possessing at least 2 years of relevant work experience in operational risk management, business function risk and control gained from AIs and/or non-bank financial institutions, and/or internal audit (related to operational risk management and controls within an AI); AND

• Employed by an AI at the time of application.

Professional Level:

Path (i):

• Possessing at least 8 years of relevant work experience in operational risk management, business function risk and control, and/or internal audit (related to operational risk management and controls within an AI), of which at least 3 years must be gained from Professional Level job roles within an AI; AND

• Employed by an AI at the time of application

OR

Path (ii):

• Completion of HKIB’s Postgraduate Diploma for Certified Banker (Operations Management Stream); AND

• Possessing at least 5 years of relevant work experience in operational risk management, business function risk and control, and/or internal audit (related to operational risk management and controls within an AI); AND

• Employed by an AI at the time of application

The one-off grandfathering arrangement ended on 30 September 2022.  For individuals who have sufficient relevant work experience but are not working in an AI during the grandfathering period from 1 July 2021 to 30 June 2022, they may submit their applications to HKIB for grandfathering within 3 months from the date of joining the operational risk management function of an AI and becoming RPs.  However, applicant should have met all the applicable grandfathering criteria as prescribed above on or before 30 June 2022. A one-off grandfathering fee will apply.

Annual Renewal of Certification and CPD Requirements

Certification of AORP and CORP are subject to annual renewal by HKIB.  

Certification holders are required to comply with the annual CPD Scheme in order to renew their Certification. The requirement is a minimum of 12 verifiable CPD hours for each calendar year, of which at least 6 hours should be earned from activities related to topics of related of compliance, legal and regulatory requirements, risk management and ethics.

Any excess CPD hours accumulated within a particular year cannot be carried forward to the following year.

The CPD requirements will be waived for the first calendar year (ending 31 December) of certification and grandfathering.

General Enquiry / Feedback