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Introduction to Operational Risk Management
>ORM is the oversight of operational risk, including the risk of loss resulting from
Inadequate or failed internal processes and systems;
Human factors; or
External events.
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Board
sets strategy and framework plus oversight
Fully integrated into the banks overall risk management processes
Fundamental
principles of operational risk management
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Governance
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Risk
Management Environment
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Role
of Disclosure
Board of
directors should establish, approve and periodically review the Framework
Board of
directors should approve and review a risk appetite and tolerance
statement
Senior
management should develop for approval by the board of directors a clear, effective and robust
governance structure
Identification
and assessment of the operational risk inherent
Implement
a process to regularly monitor operational risk profiles and material exposures to losses
Strong
control environment
Business
resiliency and continuity plans
Approval
process for all new products, activities, processes and systems
Allow
stakeholders to assess its approach to operational risk management
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