Op risk moving to heart of management decision-making

Daily news headlines

LONDON - Financial firms are starting to look at operational risk as a factor in management decision-making, according to a new report by business analyst Datamonitor. The paper says firms are seeing more proactive use for op risk management than as a reporting and compliance function.

The report, entitled 'From Compliance to Improved Business Performance through Operational Risk Management (ORM)', says operational performance is being improved by leveraging op risk reporting data, and that IT is expected to play an increased role in process monitoring and automated reporting.

"Against the backdrop of well-publicised instances of fraud, wider systematic risks and compliance changes post-crisis - it is certain there will be more stringent reporting requirements," says Damian Shaw-Williams, financial services technology senior analyst at Datamonitor and the report's author.

"In addition, regulators will become more prescriptive with management involvement in monitoring ongoing operations, as opposed to solely periodic reporting. Financial institutions have been spurred into appreciating the benefits arising from seeing op risk as the framework by which all other risks can be managed," says Shaw-Williams.

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: