In January we brought together the ORX LeadersConnect community to discuss their focus for the year ahead.
LeadersConnect is our invitation-only community for Heads of Operational Risk (or equivalents). It provides a platform for strategic-level discussion on operational risk and allows senior professionals from our member organisations to connect with each other.
Read on for highlights of the January discussions.
The community's views on the year ahead
“I don’t want to be late and turn up to pick up the pieces of an event. I want to be early and help prevent the event occurring."
The focus for 2022 is to ensure that we continue to deliver value and remain relevant, and the discussions identified a range of activities for 2022 that are aimed at achieving those goals. To do this, many risk functions are adapting to the more agile ways their businesses are operating – using data more and taking steps to get ahead of a rapidly changing risk landscape..
Key themes
Unsurprisingly, the three key themes that were evident throughout our conversations were connected to each other. They included:
Blurring the lines
Operational/non-financial risk is moving away from being an independent second line function towards being actively involved in managing risks.
Being agile
There is a clear move towards taking a more agile approach to risk management to better support the business, this includes developing automated programmes, using AI for analysis and taking a trigger-based approach to RCSA and scenario analysis.
Redressing the balance
Everyone involved in LeadersConnect had a clear desire to spend less time on day-to-day risk management and to spend more on analysing data and acting on insights.
Moving towards active and optimised risk management
The LeadersConnect community shared different steps they're taking towards more active and optimised risk management. Here are some of the main ways mentioned in the discussions.
Optimised risk management
- Improving data quality
- Driving consistency through an umbrella framework
Active risk management
- Supporting and managing change
- Getting more involved in developing business strategy
- Getting better at predicting operational risks
The problem of attracting and keeping talent
A common challenge mentioned throughout the discussions was how to attract talent and how to keep it. In a time of skills shortages, focusing on training existing resource and recruiting from the first line is more important than ever.
Prepare for the future of risk management with ORX Membership
Actively managing operational and non-financial risk is more important than ever in today's digital environment. ORX is here to support you and your organisation through this transition. Get access to operational risk loss data, compare your practice with other organisations and be part of a global community of operational risk managers who are working together to overcome the challenges faced by financial firms in our current operating landscape.
