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Article by Tim Bailey – 1st Risk Solutions

A robust, effective operational risk framework that fits the needs of your organisation, is critical for the appropriate management of business operations, risk and governance.

What does good look like?

-Operational risk policy and framework is designed and operating effectively to meet the requirements of the organisation to manage risk within appetite

-Roles of the 3 Lines of Defence are clearly defined with appropriate segregation and ownership

– The governance structure is effective and compliant to Senior Manager Regime requirements

– Risk reporting is accurate, complete and compliant to BCBS239 requirements

– KRI, KCI and MI are appropriate, forward looking and support effective management decision making

– Culture, tools and processes for operational risk management are embedded throughout the organisation

1st Risk Solutions know what good looks like.

How 1st Risk Solutions can help you achieve an effective operational risk management framework

We perform assessments of operational risk frameworks, which are benchmarked against market best practice and competitors.  We will identify any relevant opportunities for improvement from assessments performed, and provide pragmatic advice on implementation options. During the review we:

-Assess the design effectiveness of the existing operational risk policy and framework in place and its ability to meet the needs of your organisation

-Assess the operational risk policy RACI (Responsible, Accountable, Consulted and Informed) matrix across the 3 Lines of Defence in your organisation 

– Assess the operating effectiveness of the key elements of the operational risk framework performed in your organisation 

-Assess the design and operating effectiveness of the risk management governance framework, including management effectiveness metrics and scorecards 

-Assess the risk appetite statements, measures and metrics 

-End to end review of operational risk reporting and compliance to BCBS239 

-Review the accuracy, completeness and appropriateness of the KRI, KCI and MI used for all risk governance and decision making

Click below, or visit our capabilities pages  to learn more about what we do

Operational Risk Framework Benchmark Review