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Operational Risk Management
Financial institutions have recognised, and to an extent have attempted to manage, operational
risk for many years. However the introduction of an operational risk-specific capital charge has
dramatically focused attention on improving operational risk management techniques, and on
compliant treatments of operational risk.
And improved operational risk identification, measurement, pricing and control will have real
impact on income quality, irrespective of regulatory compliance issues.
Our consultants have advised institutions on best practice operational risk management structures
and techniques including:
- Incorporation of operational risk-specific policies in the institutional policy framework
- Development of operational risk management processes
- Development of RCSA methodologies
- Board-level supervisory, and group control, structures
- Allocation of regulatory and economic capital to operational risk
- Pricing operational risk
- Operational risk-related regulatory and internal compliance
- Quantitative techniques in operational risk measurement and loss prediction
- Improving cultural awareness, transparency and rigour in operational risk management
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