Description
Banks and financial institutions are undergoing a sea change and today face an environment marked by growing consolidation, rising regulatory requirements, proliferating financial engineering, uprising technological innovation and mounting competition. This has increased the probability of failure or mistakess from the operations point of view - resulting in increased focus on managing operational risks.
Organizations have re-evaluated their risk management programs in wake of the recent financial crisis, realizing that existing risk management paradigms just don`t work. Traditionally, risk was viewed in terms of financial loss but recent events have identified a new dimension of risk, relating it to business activities, strategic objectives and reputation.
Operational Risk is a risk arising from execution of a company`s business functions, influenced by both internal and external variables. It has to be acknowledged and accounted for, not only as a compliance issue, but as an integral component to prudent business operations. Operational Risk can have critical impact on operational, financial and the reputational aspects of an organization. Hence, deciding the correct approach, framework and metrics is an inherent component of establishing a sound risk management practice.
The 2nd Annual Operational Risk Management 2010 is a platform to confer the diverse approaches to operational risk management with experts and learn the requisites to constructing a secure operational risk framework.
Metrics utilized in Operational Risk Management will be evaluated in order to combine results from different business functions to afford a holistic operational risk overview for the organization. These, in turn, will dictate how Op Risk can be used for strategic decision making for adding value to business.
