After many years of continuous development, operational risk management can now be regarded as an important and independent management discipline in its own right. It is a value-adding activity that has a direct or indirect impact on bottom-line performances of organisations and is fundamentally concerned with good governance and involves consistent alertness and continuous improvement. As a result, it is essential for business managers at all levels to understand the concept of operational risk management and its methodologies. Operational risk management will assist organisations to develop and implement an operational risk management process that will support the achievement of business objectives.
In addition, Operational risk management attempts to bridge the gap that exists between some of the theoretical concepts of operational risk and the practical implementation. It firstly deals with the development phases of operational risk, and then illustrates the effective application of an operational risk management process. It also discusses relevant issues in the field and how to deal with current risk exposures.
Contents include the following:
- Operational risk management framework
- Development of an operational risk management function
- Operational risk identification
- Operational risk evaluation
- Operational risk control
- Operational risk financing
- Operational risk monitoring
- Operational risk management model
Operational risk management is aimed at undergraduate students as well as managers interested in the management of operational risk.