Operational Risk Management: Specific challenges within the financials sector

Aside from credit, market and liquidity risk management, operational risk management is one of the key disciplines for managing risks – especially in banks and financial institutions. EU regulations mandate that these institutions adequately manage and mitigate operational risks. 

A professional operational risk management system makes it possible to achieve the goals that drive success

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Establishing standardized methods: Implement a standardized approach to identify, assess and mitigate operational risk. 

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Standardizing the management of damage claims: Introduce a standardized approach to register, evaluate and report operational loss events. 

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Implementing regulatory requirements: Fulfill all risk management requirements as defined by the European Banking Association. 

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Enabling BIA usage: Allow the institution to follow BIA, a more favorable approach to calculate required minimum capital. 

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Identifying potential savings: Save costs by reducing losses caused by operational events.

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Determining the need for optimization: Identify areas of improvement for overall risk management and internal control procedures.

What you need to know about operational risk management

Organizations should take any relevant challenges into consideration at an early implementation stage. This includes establishing a process for reporting operational risks in order to gain insight on incurred risks and, therefore, transparency on these events as well as any resulting losses or capital requirements. In doing so, management expectations must be met while the involvement of the 1st line of defense needs to be maintained at an reasonable level. In larger corporations, cultural differences within the various organizational units also come into play since the framework, by definition, should be applied uniformly throughout. Efficient operational risk management ensures that continual improvements are made to process maturity, thereby transforming it from a necessary burden to a real business enabler.

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What are the advantages of operational risk software?

Our operational risk management software BIC enables organizations to build a future-proof, efficient management system to steer operational risks. This brings several advantages:

  • Profit from an easy-to-use interface to administer operational risks on all organizational levels. 
  • Identify and classify risks and losses in a standardized approach to enforce consistent quality throughout the process.
  • Work effectively with all process contributors in a structured, workflow-driven approach.
  • Boost overall efficiency by integrating different contributors across the institution (e.g., allowing all employees to record loss events).

Which operational risk solution is right for me?

Whether you prefer a custom design or pre-built solution, GBTEC offers the right software for your needs. See for yourself and discover our BIC GRC Solutions for professional operational risk management.

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BIC Custom GRC

BIC Custom GRC offers customizable, flexible custom solutions that can be tailored to the client’s unique processes.

Discover BIC Custom GRC

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BIC Enterprise Risk

BIC Enterprise Risk is our intuitive, fast-to-implement standardized solution that fulfills leading standards.

Discover BIC Enterprise Risk

Do you have any questions?

Do you have any questions about our products or services?
Our experts will gladly assist you and look forward to your request.

grc@gbtec.com+43 1 3670876 -0Contact form