Operational Risk Assessment & Control
The impact of Operational Risks on capital requirements and insurance costs cannot be ignored. Operational Risk is now a mandatory core competency for financial services management, and quantification of this risk is an essential prerequisite to controls.
Firms are increasingly dependent on taking Operational Risk in order to achieve spread and competitive advantage. Current challenges include emerging products and markets, high yield & low liquidity, speed to enter market with non-optimum competencies, and processes well short of STP.

There has to be an explicit link established between operational risk management and strategic planning and culture. In addition, competencies & process development must complement each other.

Definition
Operational Risk is the risk that the deficiencies in information systems or internal controls will result in unexpected loss. The risk is associated with human error, system failures and inadequate procedures and controls.
The Committee on Banking Supervision,
Bank of International Settlements, Basle

The Operational Risk Component Summary

Therefore there are five key components of operational risk

    Information Systems
    Internal Controls
    Human Error
    System Failure
    Inadequate Procedures and Controls

Services Offering
The e-BV team have a comprehensive portfolio of services for all organisations seeking to improve their processes of identifying operational risk and mitigating it.
        Project planning & communication
        Risks Framework
        Risk & control point visualisation
        Risk reporting development
        Policy formation
        Procedures Manuals – on-line
        Insurance review
        Risk quantification and capital allocation planning
        Systems integration planning