This article updates Six stages to a robust operational risk framework, written by Richard Pike in September 2011. It explains how a financial services company can create and implement a stable and manageable framework for risk management.
1. Risk identification
In this section in the previous article I talked about the process of defining and listing the risks associated with different types of operational risk. The end point was a risk library for the firm along with the related items (policies, regulations, controls, tests, etc.).
The practice of risk teams providing lists of risks to management for their review has some major faults and over the past number of years these have been exasperated. Issues with risk registers include:
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