Operational Risk Management in Financial Institutions

Annalytic overview: The aim of this section is to understand the nature of operational risk, identify typical occurrences of operational risk within a bank’s business model, and to consider external perspectives on the importance of operational risk management in rating and banking supervision. The 'next' Operational Risk: Cybercrime: Cybercrime has evolved as the markets evolve and we continue embrace new technologies. Yet do we truly understand this new risk? Is our lack of knowledge a reason why so many risk professionals globally now speak in hushed voices about it being when - not if - cybercrime will bring down a financial institution?
Operational Risk Governance: The objective of risk management is to add maximum sustainable value to the activities of an organization. Therefore, it needs to be a continuous and developing process that operates in conjunction with the development and implementation of the organization’s strategy, and whose aim is to increase the probability of achieving the overall objectives of the organization and reduce the probability of failure. Management of Operational risk: The objective of this section is to consider the main techniques used to identify and manage operational risks within a financial institution environment.