Operational Risk and Resiliency Frameworks

A tale of five risk management characters and how they fit into your organization.

Whether isolated within a unique risk category or ignored by the others, the banker remains in a more remote risk world than that of the cop, nerd, soldier and mandarin, who increasingly overlap and combine their skills into a broad-based "operational risk" category. Is this the "real" risk categorization that enterprises must consider? Financial and Operational? These two will probably never come together under a single standard or detailed and specific methodology, but they will run parallel through the enterprise and converge at the Board level. Financial risk and operational risk may always be different disciplines; the tools will be used by different people with different skills, but both are required to assess and manage the enterprise risks. Possibly as important is that the financing of enterprises under the Basel II Capital accord (effective in 2008 in the United States) will require operational risk management skills in addition to traditional financial risk management skills.

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