Process-centric Operational Risk Management 2017-02-02T16:59:09+00:00

A Process-Centric Approach to Managing Operational Risk TM

Go Beyond Compliance.  Reduce Risks & Improve Processes.

Identifying Operational Risks relies upon understanding the business end to end processes to ensure that risk assessments and control decisions are taken from an operational point of view. This minimizes risks, maximizes compliance and optimizes business performance.

We establish a complete set of needed descriptions of how the business conducts its work, where operational risks occur, and how and where they are mitigated through controls or the development of alternate ways to close control gaps.

We will model risks, controls and processes into a holistic framework that can be applied for Risk Management and can be extended through-out the organization to support process improvement and governance.

Our team delivers an integrated set of related models by applying industry best practices in a collaborative manner while accommodating (and improving where needed) your documentation and sustainment standards.

Operational risk management cartoon

 Learn more about in our article on Avoiding Risk Management Failures

Risk management is becoming more and more important for organizations today to better understand business threats and to ensure that these threats are mitigated. In addition, boards of directors and compliance agencies alike are pushing for assurance that internal controls are sufficient to mitigate the potential consequences of external and internal uncertainties.

The global regulations of Basel II define Operational Risk as “The risk of loss resulting from inadequate or failed internal processes, people, and systems or from external events”. This definition is also in synch with ISO whose 9000 standards update for 2015 will add a significant risk based expansion to its traditional process focus. Regardless of the risk management framework adopted, one of the first steps undertaken is ….

Contact us to learn more about our innovative Operational Risk Management approach

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Expected Benefits

  • Regulatory and internal risk compliance requirements are fulfilled

  • Risks and mitigating controls are identified and mapped to the operational processes

  • Process knowledge captured for multiple business purposes

  • Processes are improved and streamlined without introducing additional risks

Our Operational Risk Management Approach

The main steps of our proprietary Process-Centric  Approach  to Managing  Operational  RiskTM  are:

  • Step 1. Review documented risks, controls and processes
  • Step 2. Define scope

  • Step 3. Map processes in scope
  • Step 4. Identify and map risks and existing controls

  • Step 5. Determine gaps in risk controls and process performance

  • Step 6. Identify and assess process improvement and risk mitigation opportunities  
  • Step 7. Develop and implement integrated process improvement and risks mitigation action plan