One of today’s realities is that most companies are dependent on technology to support the fulfillment of their strategic objectives. But while technology represents a strategic and tactical requirement for most businesses, it is also a source of risk. Generally speaking, technology risk is considered the risk of a given piece of technology (hardware or … Continue reading
The practice of managing operational risk has effectively been around forever, but Operational Risk Management (ORM) as a formal program is one of the newest of the risk management disciplines. Operational risk represents a significant area of potential losses for any organization, but it is extremely hard to quantify and arduous to manage. ORM covers … Continue reading
One of the more significant areas of operational risk management is a sound Information Security (IS) program. Information security involves the risk to the business of an event that threatens the confidentiality, integrity or availability of sensitive information, whether in physical or electronic form, both internally and externally. Note that this is distinctly (and profoundly) … Continue reading
Every iinstitution makes extensive use of analytic models to support everyday business decisions. But in the course of building, deploying and using these models, the institution must accept a certain amount of risk. The OCC in its supervisory guidance defines “Model Risk” as “the potential for adverse consequences from decisions based on incorrect or misused … Continue reading
One of the elements of sound operational risk management is good a vendor management (VM) program. Vendors and service providers (collectively “third parties”) represent a range of risks, from the potential for business disruption to impact on the customer experience and even data exposure. The degree to which organizations proactively manage these risks will have … Continue reading
Thank you for visiting OpRisk Advantage. Hopefully the information you find here will help you in the advancement of your own Operational Risk Management program. Please feel free to comment on any of the content you find here, just remember to be civil, respectful and constructive. You can also send comments, questions and topical suggestions … Continue reading
