Institute of Op Risk up and running

LONDON – The Institute of Operational Risk, long in the planning stages, is now gathering momentum, according to Philip Martin, director of the organisation.

The Institute was founded in February 2005 as an offshoot of the Operational Risk Research Forum. ORRF, which is now a for-profit organisation, was founded by Brendon Young, who is an independent consultant but was formerly focused on operational risk at rating agency Moody's. The original intention of the Institute, which has official UK 'institute' status, was to provide education and accreditation services to the operational risk industry, which would include the creation of a qualification. However, the Institute has been beset by organisational difficulties, according to former members.

Martin says these problems have been resolved and a new council of directors as well as a steering committee were appointed at the annual general meeting held in December. Martin says: "We want to promote op risk as a recognised discipline in financial services."

Martin says the Institute is now in the throes of a membership drive to recruit executives from a wide range of related disciplines, including business continuity, security, anti-money laundering and other related fields. To achieve membership, applicants must be interviewed by two existing Institute fellows, as well as provide details about their professional background, references, and other information.

Also, a subcommittee has been established to examine the operational risk-related courses offered by various educational institutions and develop a framework to 'credit' those courses towards a standard level of knowledge and accomplishment for membership to the Institute.

The new council of directors for the organisation includes: Peter Brown, Brown Westbury Consulting; George Clark, National Australia Group Europe; Michael Faber, JP Morgan Cazenove; Philip Martin, Enterprise Risk Advisory & Consultancy; Michael Tripp, Ernst & Young; and Brendon Young, Operational Risk Research Forum.

The new steering committee includes: George Clark, National Australia Group Europe; John Charters, National Australia Bank, Australia; Victor Dowd, Enterprise Risk Advisory & Consultancy; Michael Faber, JP Morgan Cazenove; David Lau, Deloitte, Hong Kong; Philip Martin, Enterprise Risk Advisory & Consultancy; Ed Sankey, Larocourt; and Michael Tripp, Ernst & Young.

Martin says a new chapter has also been launched in Australia. OR&C

Oprisk & compliance