Operational Risk Management

The protection of values has been always a concern for mankind. Due to the increasing complexity of systems, risks are increasing by number and quality. The protection of values (staff, money, facilities, environment) in enterprises requires a portfolio of standardised tools that cover the complete variety of potential risks.

National and supranational authorities support this development with recommending and enforcing the implementation of standardised Operational Risk Management.

A solid long-term Roadmap and clearly defined target for the final architecture are the basis for a successful start into Operational Risk Management.

Operational risk management is the youngest discipline in risk management. Although always encountered implicitely, the standardisation of the Basle Committee leads to substantial changes in management approach, processes and systems.

Still the national authorities give the options in the bandwith either to actively MANAGE risks by implementing measuring tools or to NOT MANAGE risks, but with holding higher risk capital.

Eventually financial institutions are recommended to "measure and reduce" in order to keep the competitive edge on the market.