IERP® Monthly Newsletter Issue 30 December 2021 | Page 15

Firms that see a need for an operational risk manager will have to source for candidates with a range of skills, including analytical ability, technical proficiency and emotional intelligence. These candidates will also need a thorough understanding of process, risk and control design. Besides these, they should also have knowledge of governance; experience in data management and technological processes is also desirable. In addition, they will need interpersonal skills for interaction with staff at all levels as well as sound business judgement and strong analytical skills. The job will require people who can think independently, work without supervision but engage with board and management when required.

 

Operational risk is a relatively recent field but a demanding one. Many organisations have failed in this key area because operational risk is complex and involves different types of risk – fraud, insider trading and cyber risk, among others – which are themselves becoming more sophisticated. The general business environment and how business is conducted today is changing as well, spurred by digitisation and automation, machine learning and artificial intelligence. These in turn have the ability to spark other issues like decision bias and unethical use of information.

 

Operational risk managers need to be problem-solvers, investigators and analysts. They need to identify and evaluate risks, investigate their root cause(s) and offer mitigative solutions – tasks often complicated by limited timeframes and the need for detailed documentation. The role also includes understanding and being able to comply with regulatory obligations. Organisations looking for operational risk managers should seek people who are concerned about making improvements to processes and procedures, be constantly on the lookout for ways to do things better – and be prepared to ask the hard questions to get the job done.

14 The IERP® Monthly Newsletter December 2021