Risk Metrum

 

 

 

Let’s look at some techniques banks or FIs can utilise in order to Identify operational risks.   Process Deep-dives - A bank's operations extend beyond its core functions and encompass various teams. Many countries mandate that banks disclose the compensation of senior staff members and impose caps on such compensation (requiring approvals). While this falls under the HR function, it becomes an operational risk because a regulatory breach, even on HR matters, can disrupt operations. Consequently, divisional managers are required to define, own, and regularly audit their processes to identify any gaps or vulnerabilities. This process helps unearth new risks and endorse previously identified ones Reporting & Data Analysis : Banks are required to regularly report to the regulators multiple data points . While this data is used for reg reporting its also has a key function of identifying risks within its operations. Hence reports and data generated from reports for analysis a...