There are various types of risks that a business faces and to it important to deal with them correctly and in time. They require to be predicted and then controlled in a way that it does not affect their business. These basic tutorials on operational risk management will help you learn about risk involved and also the types of risks along with risk mitigation tools.
The training will include the following;
-
Introduction
-
Factors
-
Operational Risk Management
-
The Process/Functions
-
Methods of Capital Charge Calculation
-
Self-Evaluation/Test
Operational risk summarizes the uncertainties and hazards a company faces when it attempts to do its day-to-day business activities within a given field or industry. A type of business risk, it can result from breakdowns in internal procedures, people and systems—as opposed to problems incurred from external forces, such as political or economic events, or inherent to the entire market or market segment, known as systematic risk. Operational risk is the risk of losses caused by flawed or failed processes, policies, systems or events that disrupt business operations. Employee errors, criminal activity such as fraud, and physical events are among the factors that can trigger operational risk. Most organizations accept that their people and processes will inherently incur errors and contribute to ineffective operations. In evaluating operational risk, practical remedial steps should be emphasized to eliminate exposures and ensure successful responses. If left unaddressed, the incurrence of operational risk can cause monetary loss, competitive disadvantage, employee- or customer-related problems, and business failure.
