Over the last few years, operational risk has evolved into a key business risk. This trend has been driven by growing economic uncertainties, stiffer regulatory fines, and the emergence of new risks such as conduct risk, model risk, vendor risk, and cybersecurity risk.
Stakeholders (boards, shareholders, and customers) are demanding swifter risk mitigation, real-time risk intelligence, and greater risk accountability from both management and business lines. In fact, operational risk management is increasingly being tied to individual and business unit performance.
As financial services institutions expand their businesses, there is a greater need for them to ensure process accountability and transparency, determine their true risk appetite, mitigate risks proactively, and build customer and shareholder confidence.