Operational Risk Management

As a fully integrated risk practice, we have the size and capability to address all risk issues and deliver end-to-end solutions

Operational Risk is described by the Basel Committee on Banking Supervision as "the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events. As such, operational risk captures business continuity plans, environmental risk, crisis management, process systems and operations risk, people related risks and health and safety, and information technology risks."

Operational Risk Management: Value

Validating and improving the reliability and effectiveness of business operations and the operation of the risk management framework.
Enhancement of risk-based decision-making and improving the risk management capability of staff.
Greater confidence in the planning or delivery of a capital investment preventing delays and cost overruns.
Enhance organisational capability in ensuring safety of staff.

Operational Risk Management: Core Services

Enhanced Risk Strategies Frameworks

Create the right risk strategies to achieve the enterprises strategic aims and implements the optimum frameworks to ensure risk is appropriately managed.

Work Undertaken

Development of Operational Risk Strategies
Assessment, design and implementation of Operational Risk Management Frameworks
Assessment, design and implementation of Operational risk Management Frameworks for regulatory capital and compliance purposes
Assessment, design and implement of Operational Risk Profile and Assessment methodologies
Assessment, design and implementation of Operational Risk Appetite
Assessment, design and implementation of monitoring and reporting processes.

Example

Designed a framework to assist a 'Big 4' bank to regularly update retail, non-retail and fair value collective LLP models.

Enhanced Risk Performance

Putting words into action – delivering risk performance within agreed tolerances at the sharp end – day after day.

Work Undertaken

Assessment, design and implementation of operational risk management mitigation approaches including policies, procedures and best practice guidance notes
Assessment design and implementation of variance analysis, root cause investigations and rectification
Control design and implementation
Services to support Advanced Risk Management approach for regulatory capital purposes (AMA banks including: scenario development, loss event data collection and regulatory capital modelling)
Operational risk capital reserving (non-banking)
Data governance, data quality framework efficiency reviews
People risk related services
Crisis management advisory services
Business continuity management services
IT risk assessment and management, including IT risk benchmarking
Information security services
Technology resilience services
Independent project advice, project risk assessment, project governance, risk management and reporting, assurance
Occupational Health and Safety risk management services
Environmental risk related services
Compliance snd performance assessments completed on behalf of a regulator or law enforcement agency
Insurance cover for operational loss support

Example

Risk Benchmark Review of A$12 billion LNG project on the North West Shelf of Australia

Enhanced Risk Management Functions Capabilities

Create the optimum organisational solutions and equips the enterprise with the right skills and capabilities to manage risk to achieve strategic aims.

Work Undertaken

Assessment, design – implementation of Operational Risk Functions and Capability
Interim management solutions: Operational Risk Officers and other professionals
Operational Risk Management Training.