Defining Operational Risk The risk of direct or indirect loss resulting from: Human factors Inadequate or failed internal processes Inadequate or failed systems External events
Today’s ORM Challenge Global, Technology and Organisational factors have created significant incremental risk management challenges for organisations. Velocity of Risk
Identifying where Assessing Managinginherent risk Monitoring the Making consistent the risk via and residual treatment to risk via arises KRIs risk and Intelligence decisions about incidents, losses, via RCSA and reduce to KCIs to risk remain risk treatment Driven ORM audits, and scenario analysis within tolerable within risk with accountability assessments capabilities allowances appetite
6
Intelligence Driven Operational Risk
Your approach should change the organisation’s focus from reacting to surprises to proactive management based on risk intelligence Risk Visibility Visibility + Analysis =
Source: Gartner Magic Quadrant for Operational Risk Management John A. Wheeler, Paul E. Proctor 15 December 2014
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