In the world of business, managing operational risks effectively can have several benefits, such as improving C-suite visibility, better risk-taking, and a more sustainable financial model.
Deloitte stresses the value of having a strong risk culture that encourages risk accountability, escalates risks properly, and comprehends operational risk losses. Deloitte offers a number of crucial recommendations for creating effective Operational Risk Management (ORM) programmes to accomplish this, including integrating ORM as a core function, coordinating it with business strategy and objectives, utilising data and analytics to improve risk identification and assessment, and optimising ORM procedures and controls.
But, the environment of operational risk is constantly changing due to fresh pressures like advanced technology, more readily available data, and developing business models. In order to develop ORM itself, McKinsey emphasises the adoption of new technologies and data usage while highlighting the necessity for ORM to stay up with these dynamic changes.
The linear Operational Risk Management process, which includes risk identification, evaluation, measurement, mitigation, monitoring, and reporting, is clarified by AuditBoard. Four fundamental concepts serve as a framework for these stages: avoiding needless risk, embracing risk when benefits outweigh costs, predicting and managing risk via meticulous planning, and making risk decisions at the right level within the business.
The Spring 2023 Operational Risk Management (ORM) Live Global Webinar presented a valuable chance for industry leaders in the middle of these developments. From January 8 to January 15, 2023, the webinar, hosted by the New York Metropolitan Chapter of ISACA, covered important ORM subjects such as frameworks, governance, risk culture, risk appetite, assessment, reporting, and assurance.
A key meeting for industry participants is the Operational Risk Management Conference, which is set for June 14–15, 2023, in Mumbai, India. The summit’s objectives were to address the most recent ORM concerns, talk about compliance issues, keep up with risk and legal developments, and investigate cutting-edge technological solutions. The summit promised to be a vital occasion for promoting ORM techniques and encouraging collaboration among professionals in the field with keynote talks, discussions, breakout groups, continuing education options, and networking possibilities.
Operating risk management is essential as organizations strive to navigate a rapidly evolving business landscape. A culture of risk awareness and accountability, together with best practices, technology, and data, can strengthen the resilience of businesses and ensure their long-term success.