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LOMA 335 — Operational Excellence in Financial Services

Course Type: Course Portal
Topics: Life Insurance, Operations & Administration
Designations: ACS, AFSI, FFSI, FLMI
Language: Chinese (simplified), Chinese (traditional), English


Overview

LOMA 335 presents financial services from the perspective of a company’s operations management. This course focuses on practical techniques to accomplish the everyday tasks of providing financial services as efficiently as possible.

Topics

  • Introduction to Operational Excellence for Insurance Companies
  • Aligning Performance with Corporate Initiatives
  • Leadership for Performance Excellence
  • Motivation and Teamwork for Organizational Success
  • Decisions and Approaches to Decision Making
  • Business Research in Financial Services
  • Decision Models and Payoff Tables
  • Quantitative Modeling for Financial Services
  • Descriptive and Inferential Statistics for Operations
  • Quality and Quality Management
  • Business Process Excellence in Financial Services
  • Managing for Excellence in Contact Centers
  • External Requirements for Operations
  • Project Management in Financial Services Companies

Module 1: Introduction to Operations Management, Leadership, and Motivation

Chapter 1: Introduction to Operational Excellence for Insurance Companies

Overview of Operations Management

Approaches to Operational Excellence in Financial Services

Automation and Other Process Improvements

Offering Desirable Working Conditions

Providing Job-Relevant Training and Education

Using Controls to Support Efficiency

The Value Chain

Processes in Financial Services

Roles and Functions of Operational Employees

The Financial Services Industry and the Insurance Sector

Insurance Industry Characteristics, Trends, and Issues

Technical Expertise and Complex Products

Societal Trends

Regulation

Globalization, Consolidation, and Convergence

Industry Image and Market Dynamics

Interdependence and Cooperation

Chapter 2: Aligning Performance with Corporate Initiatives

What Is Strategy?

The Role of Planning and Control

Alignment and the Potential for Misalignment

The Hierarchy of Corporate Strategy

The Competitive Environment of Strategy

Market Structure

Market Dimensions

Market Models and Competition for Insurance Companies

Core Competencies and Competitive Advantage

Generic Growth Strategies

Popular Growth Strategies for Insurance Companies

The Growth Cycle of Competitive Excellence

Chapter 3: Leadership for Performance Excellence

The Tool Kit for Effective Leadership

Trait Theory and Emotional Intelligence

Behavioral Theory

Trust and Influence for Leadership

Employee Performance and Organizational Control

Performance Evaluation

Chapter 4: Motivation and Teamwork for Organizational Success

Directing Individual Behavior Through Motivation

Theories of Motivation

Motivating Through Job Design

Motivating Through Rewards

Motivating Through Engagement

Group Behavior in Work Settings

Characteristics of Groups

Group Development

Group Decision Making

Types of Teams

Team Effectiveness and Trust

Organizational Politics

Module 2: Decision Making and Analysis for Operations

Chapter 5: Decisions and Approaches to Decision Making

Introduction to Decisions

An Approach to Decision Making

Decision Complexity

Example: Everyday Decision Analysis and Decision Making

Influences on Decision Complexity

Operational Decisions in the Organizational Hierarchy

Decision Styles in Organizations

Delaying Making a Decision

Overview of Decision Approaches

Intuitive Decision Making

Scientific Method

Evidence-Based Management Approach

Chapter 6: Business Research in Financial Services

Reasons for Research in Financial Services

Progression of a Research Project

The Research Question

The Research Proposal

Research Planning and Design

Executing Research Activities

Reporting Research Conclusions

Research Framework and Vocabulary

Components of the Research Framework

Variables in Research and Modeling

Deductive and Inductive Reasoning

Quantitative Research

Qualitative Research

Research Objectives

Decision Modeling

Predictive Analytics for Operations

Error and Bias in Interpreting Information

Chapter 7: Decision Models and Payoff Tables

Decision Theory Models

States of Nature in Decision Theory

The Decision Environment

Decision Payoffs

Payoff Tables

Payoff Analysis

Marble Financial’s Decision Analysis—An Example

Marble’s Decision Alternatives

Marble’s Payoff Table

Interpreting Marble’s Payoff Table

A Dominant Decision Alternative

Decision Making Under Conditions of Risk

The EMV Criterion

Calculating EMVs

Marble Financial’s Payoff Table for the EMV Criterion

Decisions in an Environment of Uncertainty

Insufficient Reason Criterion

Marble Financial’s Decision and the Insufficient Reason Criterion

Maximax Criterion

The Routine Insurance Company and the Maximax Criterion

Maximin Criterion

The Routine Insurance Company and the Maximin Criterion

Minimax Regret Criterion and Regret Tables

Marble Financial and the Minimax Regret Criterion

Chapter 8: Quantitative Modeling for Financial Services

Quantitative or Qualitative Forecasting

Time-Series Forecasting Models

Naïve Time-Series Models

Arithmetic Average Models

Calculating an Arithmetic Average

Simple Moving Average Models

Calculating a 4-Month Simple Moving Average

Weighted Moving Average Models

Calculating a Weighted Moving Average

Other Complex Data Patterns

Trends in Data Series

Variations in Data Series

Causal Forecasting Models

Scatter Diagrams

Regression

Econometric Models

Forecast Accuracy

Error

Percentage Forecast Error or Forecast Accuracy

Mean Forecast Error

Mean Absolute Deviation

Choosing a Forecasting Approach

Historical Data and Quantitative Methods

Mix of Quantitative and Qualitative Methods

Chapter 9: Descriptive and Inferential Statistics for Operations

Data Sets and Distributions

Frequency Distributions

Normal Distributions

Nonnormal Distributions

Characteristics of Data Distributions

Measures of Central Tendency in Descriptive Statistics

Mean

Median

Mode

Measures of Dispersion in Descriptive Statistics

Range

Variance

Standard Deviation

Descriptive Statistics and a Larger Data Set

Characteristics of the Normal Curve

Statistical Control Charts for Operations

Inferential Statistics and Sampling

Law of Large Numbers

Probability Sampling

Nonprobability Sampling

Using Sample Data to Estimate Population Characteristics

Sample Mean

Sample Variance

Sample Standard Deviation

Validity

Module 3: Quality Management for Operations

Chapter 10: Quality and Quality Management

What Is Quality?

Understanding Customer Needs

Achieving Freedom from Defects

Quality Management and Quality Management Systems

Principles of Quality Management

An Integrated Management System

A Structure for Accountability and Authority

Performance Dashboards for Real-Time Communication

Quality Circles

Tools for Quality Analysis

Basic Quality Tools

Memento Financial Services Case

Root Cause Analysis

Five Whys Technique

The Pareto Principle, Pareto Chart, and Pareto Analysis

Fishbone Diagram

Fishbone Diagram Example

Fault Tree Analysis

Chapter 11: Business Process Excellence in Financial Services

Process Basics

Types of Processes in Organizations

Business Processes in Financial Services

Activities in Processes

Mapping a Process

Standard Flow Chart Symbols

Process Roles

Process Analysis and Design Principles

Process Management

Technology for Process Management

Integrated Business Process Management Systems

Workflow Management Systems

Document Management Systems

Straight-Through Processing

Queuing Management Systems

Programs for Process Management and Improvement

Overview of Business Process Management

Monitoring Alignment between Operations and Corporate Strategy

Process Improvement and Benchmarking

Six Sigma® Programs for Eliminating Defects

Kaizen and Process Improvement

Lean Management for Eliminating Non Value Activities and Waste

Lean Six Sigma®

Agile Management and Organizational Agility

Chapter 12: Managing for Excellence in Contact Centers

The Inbound Environment

Technology for Customer Contacts

Traffic Patterns

Major Activities of Contact Center Management

Analyzing Data and Developing Forecasts

Determining Resources Needed

Scheduling

Managing in Real Time

Reviewing Key Performance Indicators

Module 4: External Requirements and Project Management

Chapter 13: External Requirements for Operations

Regulatory Requirements for Insurance Companies

The Basis for Regulation: Rules or Principles

The Focus of Regulation: Solvency and Market Conduct

International Organizations Guiding Insurance Regulation

Insurance Regulation in the United States

Responses to the Regulatory Environment

Privacy Regulation Affecting Financial Services

Privacy Protections—European Union

Privacy Protections—United States

Professional Organizations Affecting Operations

Standards for Accounting, Financial Reporting, and Auditing

Financial Industry Regulatory Authority (FINRA)

Global Investment Performance Standards (GIPS®)

Public Accounting and Financial Reporting Standards

Public Company Auditing and Control Standards

COSO Frameworks

SAS 70

IT Audit Standards and CobIT

Standardization

Organizations Supporting Standardization

Standards for Technology and Information

XML as an Industry Protocol

ACORD XML LAH

External Ratings of Operational Performance

Chapter 14: Project Management in Financial Services Companies

Project Characteristics

Activities in Projects

Events and Milestones in Projects

Project Hierarchies and Roles

Project Lifecycle Phases

Initiation Phase

Planning Phase

Execution Phase

Closure Phase

Project Documentation

Project Schedules

Project Baselines

Estimating Time for a Project Schedule

Tools for Analyzing Project Schedules

Using Gantt Charts

Types of Gantt Charts

Network Models for Project Management

Enhanced Analysis of Projects

Glossary

Index

Course Format

Course Portals include the following elements:

  • PDFs of the assigned course materials that can be printed or read online
  • The same interactive Practice Questions and Sample Exams currently found in LOMA Test Preparation Guides (TPGs)
  • Recommended study plans to help learners set goals and manage their study schedule
  • A variety of additional media-oriented features designed to enhance the study and review process

Exam Format

The LOMA 335 exam has 60 questions and a time limit of 2 hours. The exam is available in I*STAR, Prometric, and Paper exam formats.

Study Materials

Operational Excellence in Financial Services (LOMA, 2011)
ISBN 978-1-57974-378-9

Test Preparation Guide for LOMA 335 (LOMA, 2011)
ISBN 978-1-57974-379-6

Optional printed textbook (not included in bundled fee)

Operational Excellence in Financial Services (LOMA, 2011)
ISBN 978-1-57974-378-9
PBD Order # 335-10-11

About Bundled Study Materials

Some courses ("bundled courses") include study materials with your enrollment. A growing list of English-language courses include access to bundled study materials.

For some of these courses, once you enroll, you gain access to the study materials through your My Learning page in LOMANET. These include the Course Portal courses and the Need 2 Know courses.

How to Enroll

About Bundled Study Materials

Some courses ("bundled courses") include study materials with your enrollment. A growing list of English-language courses include access to bundled study materials.

For some of these courses, once you enroll, you gain access to the study materials through your My Learning page in LOMANET. These include the Course Portal courses and the Need 2 Know courses.


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