Op risk function plays large part in new business approval, says survey
An inaugural survey of operational risk management at 15 major financial institutions, carried out by Operational Risk & Regulation, has found banks making progress in the way their senior managers use operational risk information. There is still work to do, though – especially in the front office, respondents say.
The survey reveals operational risk managers are very involved in new business and change-management processes, with fewer than one in 10 saying operational risk played no role. Sixty-seven per cent of the respondents said operational risk had sign-off on this process. Just two years ago, one respondent said, the figure might have been closer to 20%.
“Organisations have understood that change is a major contributor to their operational risk profile,” said another survey participant.
But use of operational risk information by the front office needs work. Just 47% of respondents said the front office received their operational risk management information – a finding that led one participant to comment that trading businesses are missing a trick. “If the risk is owned by the business, then the business should be getting reports.”
This article was first published on Risk