Integrated Operational Risk Management

A hands-on and tech-aware exploration of operational risk management In Integrated Operational Risk Management: Tools, Techniques and Meeting Regulatory Expectations, distinguished risk and compliance practitioners Jimi Hinchliffe and Andrew Sheen deliver a practical discussion of operational risk management (ORM) with a pronounced focus on operational resilience and regulatory context, history, and expectations. The book offers a comprehensive explanation of how to create a holistic framework for ORM that breaks down the silos in non-financial risk management, improves efficiency, avoids duplication, and adds value to the business. The authors examine ORM's place within enterprise risk management and describes the origins and evolution of ORM as a discipline. It considers the roles of the BCBS, UK FSA and the Institute of Operational Risk. You'll also find: A variety of ORM tools and frameworks you can implement immediately to incorporate best practices on governance, risk assessment, and other areas Strategies for risk identification and controls management and balancing Up-to-date discussions of the latest and best practices in operational risk management Perfect for risk and compliance professionals at financial and non-financial firms, Integrated Operational Risk Management is a must-read resource for everyone interested in a forward-looking and contemporary examination of best practices in ORM.

About the Authors ix Preface xi Chapter 1 Introduction 1 Part One Background and Regulatory Context 5 Chapter 2 Enterprise Risk Management 7 Chapter 3 The Origins and Evolution of ORM 17 Chapter 4 Regulatory Approaches and Expectations 33 Part Two Operational Risk Management Tools and Frameworks 41 Chapter 5 Operational Risk Management – Building Blocks 43 Chapter 6 Risk Identification and Assessment – RCSA and Other Tools 61 Chapter 7 Controls 85 Part Three Antifragility, Resilience and When Things Go Wrong 93 Chapter 8 Operational Resilience – The Outcome of Effective ORM 95 Chapter 9 Risk Incidents 121 Chapter 10 Third-Party Risk Management – The Elephant in the Room 131 Part Four Monitoring, Reporting and Taking Action 149 Chapter 11 Monitoring Risks and Controls – The Holy Grail of ORM 151 Chapter 12 Mitigating and Managing Operational Risks 161 Chapter 13 Reporting Risks 169 Part Five Hot Topics and the Future 181 Chapter 14 The Art of Regulatory Relations 183 Chapter 15 The Rise and Fall of AMA and the Modelling Controversy 199 Chapter 16 Selecting and Using a GRC 207 Chapter 17 GenAI – Uses and Risks 215 Chapter 18 Esg 225 Chapter 19 The Future Challenges and Opportunities 239 Notes 245 Index 255