Journal of Operational Risk

Fighting Covid-19 in countries and operational risk in banks: similarities in risk management processes

Thomas Kaiser

  • Fighting COVID-19 in countries and fighting OpRisk in banks have a lot of commonalities.
  • Manual, inconsistent data collection is one source of limited validity of models.
  • Risk mitigation is not only based on hard data, but suffers from biases in human decision making.
  • Taking a more holistic view and clearly defining risk strategy and appetite helps both disciplines to improve.

Banks have been building, refining and applying operational risk management (including considerations for, but so far not focusing on, pandemics) for more than 20 years. Countries have been dealing with the Covid-19 pandemic for more than a year at the time of writing. Both approaches have a lot of similarities. These encompass the full risk management process: from risk strategy and data collection to modeling and decision-making. Both disciplines could learn from each other to overcome obstacles in effectively mitigating major risks, among them future pandemics.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here