O
Operational Risk Management: What it actually means?
Operational risk management focuses on risks arising from people, processes, systems or external events that interrupt normal business — not from market movements or credit exposure. Consultants start with a risk and control self-assessment, map key processes, identify failure points (fraud, cyber, supplier outages, manual overrides) and design controls, monitoring and escalation. In regulated sectors, this is tied to business continuity, third-party risk and incident reporting. Strong operational risk enables the business to grow or digitise without increasing loss events or regulatory findings. It also gives boards better assurance that day-to-day execution is under control.
