Eluding Operational Risk Failures in Banks

Introduction

The solidity of banks and financial institutions was tested in the financial crisis of 2003 and 2008. The best of banks were shown to have poor governance frameworks, overlooked internal controls and had a lack of adequate monitoring of loss exposures. Although the core reason of the crisis was liquidity risk and credit risk, a strong catalyst to the whole downfall was operational risk management, particularly in the banking system. Many banks paid the price for overruling risk management, designing products without adequate risk reviews, paying insufficient attention to legal risks and making poor disclosures to investors. The crisis highlighted a clear message – Operational risk needs to be made an important part of a bank’s risk management framework.

Hence Operational Risk Management (ORM) frameworks are constantly evolving in banks and financial institutions due to changing market conditions, new regulatory requirements, dynamic business environment, and technological advancements. It has become imperative to address the operational risks at an enterprise level, which are closely aligned to the business objectives of the organization.

But, before someone decides to invest their time and effort in implementing operational risk frameworks, it will be good to understand the following key aspects

• How to Identify and manage operational risks at an enterprise level
• What are the common challenges faced in implementing a mature ORM program
• Does adopting a technology framework to automate the ORM workflows help
• How to gain valuable and actionable risk insights to strengthen decision making

Moataz Elkasaby, ORM head at Qatar Islamic Bank (QIB), a leading Islamic Bank in Middle East, and Subharun Mukharjee, Director Product Marketing at MetricStream will be discussing about these key aspects in our webinar today. Click here to tune into this webinar today at 1pm GMT. And for other exciting details on our upcoming events, click here.