A torrid year

Editor's Letter


Welcome to the first issue of OpRisk & Compliance's 10th anniversary year. We'll be celebrating over the course of the coming 12 months in a variety of ways - in the magazine, with special events and with new online initiatives. To kick off, it seemed appropriate to focus on those who have helped operational risk grow and develop into the discipline it is today. We hope you will enjoy the profiles on the pages that follow!

It's rather appropriate that this year marks a decade of OpRisk & Compliance - given the increasingly large role that operational risk events are assuming in the continuing financial services sector crisis. The jokes about the Madoff investment fund fraud will keep the late-night television comics in material for some time, but I think most people within financial services acknowledge more frauds are likely to come to light in 2009, although hopefully not of quite that magnitude.

Certainly, I expect as this crisis continues to affect the 'real economy' in nations around the world, more frauds will be exposed, as well as system and controls failures, business risk issues, legal risk nightmares and regulatory risk migraines.

Operational risk executives can probably add the most value to their firms at the moment by identifying business lines or product areas that - for whatever reason - could be problematic. Think about it - what do you know about the managing director of mergers and acquisitions, or the seriousness of the staff cuts in custody? Who didn't take holiday at the end of the year - and why? Whose profits have been unusually fat over the past two years? Who keeps postponing investment in their information technology infrastructure?

While predictive tools for operational risk management are still in development, strong op risk executives who have developed robust informal networks and old-fashioned 'gut instinct' can probably identify four or five areas in their organisation that require further probing.

It's essential that operational risk executives do this - their firms must plunge into 2009 determined to get ahead of events. While 2008 was driven by a series of implosions as the sector rocked from one event to another, 2009 must see firms identify their potential weaknesses and deal with them aggressively in a preventative manner. Risk executives - and not just in operational risk but across the entire discipline - must seize the agenda and ensure senior management and the board navigate through this year with their eyes wide open.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Investment banks: the future of risk control

This Risk.net survey report explores the current state of risk controls in investment banks, the challenges of effective engagement across the three lines of defence, and the opportunity to develop a more dynamic approach to first-line risk control

Op risk outlook 2022: the legal perspective

Christoph Kurth, partner of the global financial institutions leadership team at Baker McKenzie, discusses the key themes emerging from Risk.net’s Top 10 op risks 2022 survey and how financial firms can better manage and mitigate the impact of…

Emerging trends in op risk

Karen Man, partner and member of the global financial institutions leadership team at Baker McKenzie, discusses emerging op risks in the wake of the Covid‑19 pandemic, a rise in cyber attacks, concerns around conduct and culture, and the complexities of…

Moving targets: the new rules of conduct risk

How are capital markets firms adapting their approaches to monitoring and managing conduct risk following the Covid‑19 pandemic? In a Risk.net webinar in association with NICE Actimize, the panel discusses changing regulatory requirements, the essentials…

Building resilience into ESG risk management

Risk and resilience continue to play an important role in the navigation of an increasingly uncertain world. Fusion Risk Management explores why it is equally crucial for technology to support organisations in addressing pertinent environmental, social…

You need to sign in to use this feature. If you don’t have a Risk.net 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