Report

Future of Operational Risk

Right time, right place

Service

ORX Membership

Community

Strategy & Leadership Community

Risk programme

Leadership Strategy & Advancing Op Risk

Sections

Report - July 2021

The drive for change in operational and non-financial risk

Are you ready to manage risk in an increasingly digitalised world? Download the report, Right time, right place: The drive for change in operational and non-financial risk, to find out.

Operational and non-financial risk (ONFR) management has an opportunity to step up like never before and support financial organisations as they go through a period of rapid transformation. To do so will mean making operational and non-financial risk resilient by using innovative technologies, which then enable risk leaders to innovate how they serve the business and actively add value.

This report looks at how the financial services industry is evolving and the impact this will have on operational and non-financial risk in terms of both the challenge and the opportunity. It also explores what operational and non-financial risk can do to ensure it truly maximises the value it delivers as the business changes.

The ambition for ONFR to be part of value creation – not just value protection – is long-standing, but never has it been closer to becoming a reality as several factors coincide. ONFR is in the spotlight, not just because of Covid-19, but also thanks to broader trends around resilience and customer centricity.

The pace of change in the business is dramatic and requires a strong risk function to ensure not only that this change avoids harm, but that it also maximises the opportunity. And finally, automation and analytics have progressed to a stage where ONFR can cost-effectively deliver both the processes and insights the business needs. For ONFR practitioners, this is the right time and the right place to make a difference.

Every ONFR function can do more to optimise its performance, to work more efficiently, and to reduce the administrative burden it places on others. Many organisations are already simplifying frameworks and deploying innovative tools and practices to do just that. But optimisation will not be enough for ONFR to ensure institutions remain resilient during this period of intense change.

The most ambitious risk leaders – those keen to turn ONFR into a function that allows digital transformation to happen safely – will need to manage risk in a far more active way. Active risk management is crucial if we are to successfully manage risks that are emergent, fast moving, and where there is lack of institutional experience. These two elements: optimise and active risk management can eventually support each other in a virtuous circle of continuous improvement through innovation to ensure ONFR does not just keep up with the evolving business, but actually helps drive it to new levels of prosperity.

Download the full report to read more

Download the free report to find out more. Sections covered include:

Supporting the speed of change in financial services
Optimising operational risk management
Haw risk can capitalise on new technology
Active risk management – iteration is not enough

Disclaimer: ORX has prepared this resource with care and attention. ORX does not accept responsibility for any errors or omissions. ORX does not warrant the accuracy of the advice, statement or recommendations in this resource. ORX shall not be liable for any loss, expense, damage or claim arising from this resource. The content of this resource does not itself constitute a contractual agreement, and ORX accepts no obligation associated with this resource except as expressly agreed in writing. ©ORX 2024