Operational Risk

Risk Register

• Risk register is a risk management tool and to

fulfill regulatory compliance acting as a repository for all risks
identified and includes additional information about each risk,
e.g. nature of the risk, reference and
owner, mitigation measures.
Features

• Qualitative / Quantitative
• Lead Person
• Repository of Risk
• No specific format
• Risk Management Tool
Contents
1. Risk ID - a unique identifier for the risk
2. Date raised - the date the risk was identified
3. Risk description – Details
4. Likelihood - How likely is that the risk will occur
5. Impact - What will the impact be if the risk occurs.
6. Severity - Likelihood x Impact
7. Owner - The person who will be responsible for managing
the risk.
8. Mitigating action - Actions that can be taken to reduce the
likelihood of the risk occuring.
9. Contingent action - What will be done if this risk does occur.
10. Progress on actions - A regular update on progress of the
mitigating actions
https://www.bain.com/insights/how-banks-can-manage-operational-risk/
VARIOUS WAYS TO REDUCE
OPERATIONAL RISK

• OUTSOURCING
• WITHDRAWING FROM A PARTICULAR BUSINESS
• CHANGING A PRODUCT
• DECIDING NOT TO TAKE A PARTICULAR BUSINNESS
THROUGH M&A
OPERATIONAL RISK MITIGATION

CONTROL

PREVENTIVE CONTROLS DETECTIVE CONTROLS