¿Cómo alinea su estrategia de gestión de riesgos operativos con sus objetivos comerciales y su apetito de riesgo?

1. Understand your business objectives and define your risk appetite according to it. 2. Ensure that risk considerations are taken into account when developing business strategies, projects, and operational plans. 3. Develop KPIs. 4. Customize risk management processes to align with the organization's business processes. 5. Regularly assess and monitor for continuous improvement.

Define risk appetite in 6 points: 1. Clear and measurable: Risk appetite should be defined in clear and measurable terms, so that it can be easily understood and applied by all employees. 2. Consistent: Risk appetite should be consistent across the organization, and should not vary from department to department or employee to employee. 3. Aligned with strategy. 4. Communicated effectively: Risk appetite should be communicated effectively to all employees, so that they understand their role in managing risk. 5. Regularly reviewed. 6. Holistic: Risk appetite should be considered in a holistic way, taking into account all types of risk, including strategic, financial, operational, and reputational risk.

Understand Business Objectives: - Gain a deep understanding of the organization's business objectives, including its mission, vision, and strategic goals. Align operational risk management strategies with these objectives to ensure that risk management activities support and contribute to the achievement of broader business targets. Define and Communicate Risk Appetite: - Clearly define the organization's risk appetite, outlining the level of risk it is willing to accept in pursuit of its objectives. Ensure that operational risk management strategies are designed to operate within these defined risk parameters. Communicate the risk appetite throughout the organization, ensuring that all stakeholders are aware of the acceptable risk levels.

Your risk appetite defines the amount and nature of risk you're prepared to undertake to achieve business goals. It embodies your risk culture, values, and operational capacity. Clearly define it in measurable terms and communicate it organization-wide. Ensure alignment with strategic objectives and review periodically for relevance. Regular review maintains its alignment with your organisational vision and mission.

Understand Objectives: Clearly define your business objectives and strategic goals. Assess Risk Appetite: Determine the level of risk your organization is willing to accept. Integrate Risk Management: Ensure that the risk management strategy supports business objectives and operates within the defined risk appetite. Prioritize Risks: Identify and prioritize risks based on their potential impact on achieving business goals. Establish Controls: Implement controls and mitigation strategies that align with both business objectives and risk tolerance. Monitor and Review: Continuously monitor risks and review the alignment between risk management practices and business objectives, adjusting as necessary.

🎯👌 To mitigate operational risks, there are eight solutions based on my experience and coaching as a chief risk officer and lecturer :👇 📌 1. Establish and enforce robust risk management policies and procedures. 📌 2. Implement and maintain effective internal controls. 📌 3. Conduct regular risk assessments and audits. 📌 4. Develop and test business continuity and disaster recovery plans. 📌 5. Invest in training and education for employees. 📌 6. Use technology to automate and streamline processes. 📌 7. Establish and maintain strong relationships with key suppliers and partners. 📌 8. Purchase insurance to protect against financial losses.

Start with strategy. What are the obstacles that may arise to interfere with achieving your goals. Those are the risks you want to tackle first.

Key Risk Indicators (KRIs) are the leading indicators which assist us in monitoring the root causes of the risks. As a first step, all the risks are identified. Then drivers for these risks are determined based on RCA. Most of the times such drivers are common across different risks bcz of risk interactions and correlations. Once root cause event is identified, an indicator is defined for this event which gives an early warning sign that risk may occur.

Begin by comprehensively mapping business processes and potential risk points. Prioritize risks based on their impact on strategic goals and define risk tolerance levels. Engage stakeholders to gain diverse perspectives. Utilize quantitative and qualitative methods for thorough risk analysis. Align risk assessments with key performance indicators tied to business objectives. Regularly review and update assessments to adapt to changing environments.

Understand the Company Objectives AND the Benefits for / Expectation of Leadership having approved those. If these are not crystal clear: do not continue. Objectives are needed for identifying PRAGMATIC Risk and Protection measures. Benefits / Expectation are a good basis for initiating a Buy-In & Change Process. Failing there will impact the Risk Management System Support & Sponsorship.

👉 I believe that the 10 best solutions for implementing and monitoring risk controls are: 👇 1. Identify and assess your operational risks. 2. Develop and implement risk controls that are aligned with your risk appetite and cost-effective. 3. Monitor the performance and effectiveness of your risk controls. 4. Report on any deviations, issues, or incidents. 5. Regularly review and update your risk management framework. 6. Establish a risk culture within your organization. 7. Train and educate your employees on operational risk management. 8. Promote a culture of open communication and reporting. 9. Use technology to automate risk management tasks and processes. 10. Benchmark your risk management framework against best practices.

Begin by deploying targeted controls based on risk assessments, ensuring they align with strategic goals. Clearly define roles and responsibilities for control implementation. Regularly monitor control effectiveness through key performance indicators tied to business objectives. Foster a culture of compliance and accountability. Conduct periodic reviews and adapt controls to evolving risks and business landscape. Utilize technology for real-time monitoring and automated alerts.

This is something that I find financial institutions excel at. The bank regulators publish exam manuals on compliance management system (CMS). In short, this is the system that takes risk assessment output and converts it to management action based on the company's intent to comply; of which, one component is monitoring. To start, look at your risk assessment for high residual risk and on a periodic basis go test if that risk is happening by reviewing historical data. As the monitoring function matures you will likely add testing to determine if the current set of controls would be able to handle low frequency / high impact events.

Implementing and monitoring risk controls is essential for mitigating identified risks. Establish control measures, such as implementing robust cybersecurity protocols to address the risk of data breaches. Regularly monitor and update controls to ensure ongoing effectiveness.

Implementation and monitoring of risk controls ensure that mitigation measures are in place and effective. For example, deploying robust cybersecurity protocols and continuously monitoring for emerging threats can align with business objectives to safeguard sensitive data.

🎯 here are the 7 best solutions to review and improve your ORM strategy: 1. Identify and assess all operational risks that could impact your business objectives. 2. Develop and implement risk controls to mitigate identified risks. 3. Monitor and review risks and controls on an ongoing basis to ensure their effectiveness. 4. Learn from experience and update your ORM strategy as needed. 5. Get feedback from stakeholders. 6. Align with business objectives and risk appetite. 7. Make ON an ongoing process: ORM is not a one-time event, but an ongoing process.

Regularly assess the effectiveness of risk mitigation measures against evolving threats and organizational goals. Solicit feedback from stakeholders and incorporate lessons learned from incidents. Realign risk assessments with changing business landscapes and strategic priorities. Utilize key performance indicators to gauge the strategy's success. Foster a culture of continuous improvement, encouraging innovation in risk management practices. Integrate findings into periodic strategy reviews, adapting policies, procedures, and training programs accordingly.

Reviewing and improving your ORM strategy is an ongoing process. Regularly evaluate the performance of your risk management framework. For instance, if incidents related to employee safety increase, consider enhancing safety training programs as part of your continuous improvement efforts.

Regularly reviewing and improving your ORM strategy is essential for adapting to evolving risks and aligning with changing business objectives. For instance, after a significant market shift, revisiting and adjusting risk mitigation strategies to stay relevant and effective.

Your Operational Risk Management (ORM) strategy isn't a fixed document but a dynamic and ongoing process. In my experience, we understood that the business environment is constantly changing, and new risks can emerge unexpectedly. Therefore, our ORM strategy involved regular review and updates to adapt to evolving threats and business needs. This approach ensured that we remained agile and responsive, enabling us to effectively mitigate risks and seize opportunities. By viewing ORM as a continuous process, organizations can stay ahead of potential challenges and enhance their resilience in the face of uncertainty.

In this regard, Three Line of Defense Model (3LoD) is important. First line should have clarity with respect to their role being primarily responsible for risk management regarding their sphere of work. 2nd LoD is responsible to provide independent assurance regarding adequacy of risk management activities put in place by 1st LoD. 1st and 2nd LoD are management functions. 3rd LoD (Internal Audit Function) is BoDs function and provides them independent assurance to the board.

Align ORM strategy with business goals by embedding risk considerations into decision-making processes. Integrate risk assessments into regular business operations, ensuring they reflect changing priorities and evolving threats. Define risk appetite in collaboration with stakeholders and embed it into ORM frameworks. Establish clear communication channels to convey risk-related insights across the organization. Continuously update ORM strategies to adapt to dynamic business environments, fostering a culture where risk management becomes an integral part of day-to-day activities.

as i mention above if your ICARA is a living document (and you have to do one) then you should have a better chance of ORM integration into the business

There are many strategies, which include the popular Three Lines of Defense Model (3LOD). At its most basic, I would call this informed risk-based decision-making. Management must make decisions to move the company forward. A primary function of risk management is informing management of the risks they must consider in their decision-making and the expectation to make decisions within the risk appetite. For example, a customer service manager should control the procedures that map out the customer interaction." Risk management should be assuring that the training they receive prior to making changes to those procedures highlights the risks they should consider like privacy or collections requirements. Then risk management would monitor.

Our ORM strategy was not treated as a separate or isolated function but as an integral part of our business processes. We integrated risk management practices into various aspects of our operations, such as decision-making, planning, and performance evaluation. By embedding ORM into our day-to-day activities, we fostered a culture of risk awareness and accountability across the organization. This approach enabled us to proactively identify and address risks while optimizing opportunities for growth. Ultimately, treating ORM as an inherent component of our business processes enhanced our ability to achieve our objectives in a controlled and sustainable manner.

Regularly compare operational practices with industry standards and peer benchmarks to identify gaps and opportunities. Engage in industry forums and collaborate with experts to gain diverse insights. Leverage lessons learned from both successes and failures to inform continuous improvement. Align best practices with organizational goals and risk tolerance, integrating them into business processes. Foster a culture of knowledge-sharing to promote innovation and agility.

Benchmarking against industry best practices allows organizations to learn from others' successes and failures. For instance, adopting risk management practices proven effective in similar industries can enhance your ORM strategy.

Compare your risk management practices against industry standards and adopt best practices from leading companies. Engage in industry forums to continuously improve your ORM strategy.

Whether the executives you are working with have applied an operational risk management approach to decision-making or not, it is critical to explain the connection between your risk concerns and meeting company goals. Executives are evaluated by growth/revenue, cost containment, and brand/reputation. You need to describe how your risk concerns increase uncertainty for the achievement of these three objectives. Then, have the risk mitigation options ready with your analysis for the best choice for the organization. This is what executives are looking for from operational risk professionals.

Risk management is both keeping things from happening and making sure things happen. Most risk managers align with one or the other side and have to work to balance it out. For example, you want to make sure that the company does not sell or conduct illegal practices. You also want to make sure that these controls still allow the business line to enter new products and change practices even where risk is present if the reward is worth it.

Essential is to know business processes and objectives. Good cooperation with all organisational units is must. Also, education for all involved employees are necessary

One of the good ways to assess and align the risk management strategy is to evaluate it against the business and balance scorecard. If the risk strategy (and the associated action plan) is able to protect revenues, business objectives and potentially carve out new avenues for growth - the organization will embrace the risk management strategy with vigor and passion.

Ask yourself - Is it possible to gain ongoing value from an operational loss and improve control adherence. Is it likely similar events will happen? For example, I recall a bank teller cashed what later turned out to be a high-quality forged government cheque. I had a local police crime prevention officer talk about current fraud events and share the bad cheque and examples of forged Id to my staff and representatives from multiple banks . Later an alert teller spotted another quality forgery at another location. The police acted quickly and found hundreds of forged cheques and ID printed at a local printing company. Staff awareness level and control enforcement were increased at multiple locations for under $1,000. Good value!