Operational Risk Management
What is it?
Operational Risk Management (ORM) is the process of identifying, assessing, and mitigating risks that stem from internal processes, systems, people, or external events. These risks can disrupt business operations and lead to financial losses, regulatory breaches, or reputational harm. ORM ensures that businesses have safeguards in place to minimize the impact of such risks.
Why is it important?
Operational risks can lead to significant disruptions, affecting business continuity, compliance, and profitability. Unmanaged risks can result in costly penalties, legal issues, and loss of stakeholder trust. In today’s complex and fast-paced business environment, having a strong ORM process is essential to prevent operational failures and ensure the organization remains resilient in the face of challenges.
How does it benefit the organization?
Effective ORM enables businesses to anticipate potential risks, reduce operational disruptions, and strengthen internal controls. It helps organizations remain compliant with regulations, safeguard their reputation, and improve decision-making. Managing operational risks efficiently also enhances productivity, minimizes financial losses, and increases stakeholder confidence.
How can Arischio Consulting help?
Arischio Consulting provides a comprehensive range of services including:
- Operational Risk Frameworks
We design and implement customized operational risk frameworks that provide a structured approach to identifying, assessing, and mitigating risks, aligning with your organization’s objectives and risk appetite. - Risk and Control Assessments
Our team conducts thorough risk and control assessments to evaluate the effectiveness of existing controls, identify gaps, and provide recommendations to mitigate operational risks. - ICAAP and ICARA Support: We assist in developing and implementing ICAAP and ICARA processes, ensuring that capital adequacy assessments are aligned with your risk appetite and regulatory standards.
- Control Assurance
We offer control assurance services to ensure that key controls within your organization are functioning effectively, meet regulatory standards, and are robust enough to mitigate potential risks.
- Risk and Control Monitoring
We implement ongoing risk and control monitoring solutions, providing real-time visibility into your organization’s risk exposure and enabling proactive responses to emerging threats. - Risk Appetite Design
We help define and design your organization’s risk appetite, establishing clear boundaries for acceptable risk levels and ensuring alignment with business strategy and decision-making processes. - Governance, Risk, and Compliance (GRC) Implementation
Our team implements comprehensive GRC systems, centralizing risk management, compliance monitoring, and internal audits to enhance operational efficiency and transparency. - Operational Resilience
We develop and enhance operational resilience by creating business continuity plans, conducting stress tests, and preparing your organization to handle crises effectively while ensuring critical operations continue. - Risk Training and Awareness
We provide tailored risk training and awareness programs that equip your teams with the knowledge and skills to identify, assess, and manage operational risks effectively.