Faculty@SBI , (FRR)®, MBA, B.E, CICC, CAIIB, Diploma in Trade Finance. 7 Million+ Views. Also dabbles in Content creation, Poetry/writing, quizzing, spiritual healing and many more. Views are Strictly Personal
Risk and Control Self Assessment vs Bias Operational risk management is the hottest trending topic among all financial institutions and Banks at least in India. It's comprehensive and detailed analysis is still not fully understood by many. Risk and control self assessment (RCSA) is mostly used by organisations to identify potential risks, design and implement controls to manage them. It's implementation though is easier said than done. RCSA all the three methods 1) Questionnaire approach 2) Workshop approach 3) Hybrid approach Though easy to work upon all these approaches suffers from the same weakness - Bias . - Judgemental as well as Motivational The impact of bias both judgemental as well as motivational bias in all the methods. These biases can surely impact the risk impact scores and its severity making the entire RCSA process meaningless. Proper training, sensitisation among employees (especially those who handle the RCSA process) to counter these biases is the only way forward and considering the size, scope and potential of the Indian Banking industry, the business potential for such initiatives is humungous. #rcsa #riskmanagement #orm #operationalrisk #operationalriskmanagement #bias #perceptionbias
