Operational Risk Management

The Covid-19 pandemic proved yet again the importance of operational risk management, as organisations that had paid more attention to this aspect of their operations were able to deal more effectively with the resultant risk exposures. As a value-adding activity, operational risk management can have both a direct and indirect impact on the bottom-line performance of an organisation. It is fundamentally concerned with good governance, and involves consistent alertness and continuous improvement. Operational risk management will assist organisations to develop and implement an operational risk management framework that will support the achievement of business objectives and increase preparedness for major incidents that could have a negative impact on them.

Operational risk management attempts to bridge the gap between theoretical concepts and their practical implementation. It firstly deals with the development phases of operational risk and then illustrates the effective application of an operational risk management process. It also discusses relevant issues in the field and how to be resilient when exposed to risks.

Operational risk management is aimed at undergraduate students from a theoretical perspective, while providing a practical approach for postgraduate students and business managers who are involved in the management of operational risk.

Jackie Young is an Emeritus Professor, specialising in operational risk management.