Until recently, many financial services institutions may have viewed operational risk as a “side project” compared to market and credit risks these organizations manage on a daily basis. The rise of new types of operational risk, the increased reliance on a more complex supply chain of vendors and the velocity of threats materializing have led to an increased focus on operational risk management from FSI’s as well as regulators. Unfortunately, identifying and quantifying these risks still remains a very manual process in many cases.
The continuous increase in operational risk is a direct consequence of various factors:
- Increasing number of third-parties and vendors that provide support services to the business.
- Growing data and cyber risks.
- Digitisation of previously manual processes, amongst others.
Many financial services institutions and regulators alike are recognising that the currently established manual processes are no longer sufficient, nor cost effective, when dealing with this level of risk. Additionally, the fragmentation of GRC tools deployed across many organizations adds an enormous burden to risk management processes,…
