A New Approach for Managing Operational Risk


Reading Source: https://www.soa.org/Files/Research/Projects/research-new-approach.pdf

Topics Covered in this Reading

  • What is Operational Risk
    • The Nature and Magnitude of Operational Risk
    • Wrong Turn: From Operational Risk to Operations Risk
  • Risk Architecture and Taxonomy
    • The Traditional Risk Universe
    • The Modern Risk Universe
    • Modern Operational Risk Taxonomy
    • Criminal Risk and Principle-Agent Risk
  • The ORM Business Problem
    • Roles and Responsibilities
    • Modern ORM in Practice
    • The Modern ORM Infrastructure
    • Traditional ORM in Practice
  • The Business Case for Modern ORM
    • The Current State of ORM
    • Key Differences between Traditional and Modern ORM
    • The ORM Evolutionary Path
    • The ORM Roadmap
    • The Economics of Modern ORM
  • Conclusions and Recomendations