Digital Money: Operational Risks and the Threats to Operational Resilience
First published:
ISBN: 9781782724506
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Impact of digitisation on operational risk management in the future
Introduction: Money is information on the move
Trends in digital money
How digital money creates new operational risks
Operational risk and cryptography
Operational risks of digital money
Commercial bank digital money
Private digital money, including cryptocurrencies
Public digital money, including CBDCs
Impact of digitisation on operational risk management
Impact of digitisation on operational risk organisations
Impact of digital money and operational resilience on ORM processes and people
Impact of digitisation on operational risk management in the future
Theory of money
Information theory
Classical cryptography
Modern cryptography
Conclusion
Acknowledgements
Appendix 1: Significant contributors to information theory and cryptography
Appendix 2: Timeline of significant contributions to information theory and cryptography
Appendix 3: Relevant information standards
Appendix 4: High-level risk registers
Bibliography
Chapter 11 considers the potential impact of digital money and operational resilience upon the ORM function, looking forward to what an ORM function could look like in the early-2030s. A relevant quote here is attributed to many people, including the Nobel prize-winning physicist Niels Bohr: “It is difficult to make predictions, especially about the future”.
A BUSY DAY IN OPERATIONAL RISK AND RESILIENCE
Rather than list a set of activities and people interrelationships (which are somewhat hypothetical anyway as it involves the future), in this chapter we will envisage what a hypothetical day in the working life of an operational risk and reliance senior manager might look like at some point in the late 2020s or early 2030s.
Helen Atkins has been head of the Group Operational Risk and Resilience (GORR) department at Global Access Bank since the department was formed four years ago. Helen had been chief operational risk and resilience officer (CORRO) at Access Bank before the new group was created in 2025 as a result of a reorganisation following implementation of the European DORA legislation, and Helen had been promoted to create and run the new GORR department. She had been tasked
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