Everybody Can Manage Operational Risk

This module explains how to identify, report, and manage incidents and operational risk, including discovery, escalation, root cause analysis, and corrective and preventive actions to protect profits and reputation.

Seven categories of operational risk, including internal fraud, external fraud, employment practices and workplace safety, clients, products and business practices, damage to physical assets, and business disruption and system failures.

Learn risk control self-assessment as a practical tool in operational risk management, enabling a holistic end-to-end view, risk identification, control testing, and action planning.

Identify process risks by understanding business objectives and context, then apply risk library inputs, assess inherent risk, and design, test, and rate controls to determine residual risk.

Completing the CSA methodology, the lecture links design and operating effectiveness to derive a final control rating and prescribes action plans, residual risk, and annual reviews.

Identify and interpret key risk indicators to quantify unit operational risk at a point in time, using lagging and leading indicators, thresholds, and benchmarks to prompt early corrective actions.

Define consistent key risk indicators across lines and locations using a six-phase approach: identify, analyze, collect data, set thresholds, report, and escalate, ensuring timely, comparable, and actionable risk insights.

Identify forward-looking, rare, high-impact operational risk events through expert input, assess potential outcomes, review controls, and plan actions while documenting scenarios and ensuring capital adequacy and approvals.

Analyze the pandemic’s impact on operational risk by examining people, process, and technology, remote work challenges, visibility gaps, and cyber risks, and explore new controls for the future.

Explore how organizations manage operational risk amid changing guidelines, remote work, and hybrid models, emphasizing structured processes, risk-aware culture, and strong cybersecurity.

Discover how to manage operational risk in the new normal by aligning culture, governance, and data-driven practices with the three lines of defense, ethics, and risk appetite.

Understand outsourcing risk management and why organizations use third-party services. Learn a six-core framework including risk assessments, due diligence, contract provisions, incentive reviews, oversight, and business continuity.

Identify and mitigate operational risk before launching new products by analyzing the business case, scope, and people, process, and technology factors, then conduct a disciplined risk review.