13 The IERP® Monthly Newsletter December 2021
Operational risk managers help their organisations mitigate risks stemming from internal processes and procedures, systems and networks, and the workforce. They do this through investigating the processes, procedures, systems and networks in order to determine where controls should be implemented or tightened. Operational risk managers are crucial to the firm because of the due diligence which they conduct in the process of carrying out their duties. This information keeps board and management abreast of areas of potential risk, and flags possible pitfalls and potholes to avoid; mitigative measures can thus be put in place.
The work of the operational risk manager also extends to analysing the causes of operational risks or failures, and developing appropriate measures for mitigation. To do this, they will have to review and evaluate new or revised processes to ensure suitability. Measuring and monitoring, gathering risk-related data, and identifying operational risk trends for their respective industries are also among the many critical tasks of the operational risk manager. Depending on their individual organisation’s requirements and the type of industry they are in, the work of the operational risk manager will vary but their primary responsibility will not change: to ensure effective mitigation of operational risks and improve the firm’s processes.
The nature of the job requires an operational risk manager to have above-average skillsets as the roles and responsibilities of the operational risk manager are extensive. He/she needs to be able to identify and mitigate potentially damaging risks before untoward events occur. Being constantly abreast of organisational and industry developments is imperative, as operational risk managers need to have a handle on what is going on with the business at any point in time, and be prepared to advise how best to deal with it. The ability to monitor, review and communicate the impact of the risk is a must; today’s business environment is dynamic and changes faster than risks can be identified.