Report - November 2023
This short report summarises the outcomes of sessions held by ORX with our members to explore four key elements of the operational risk management control framework.
ORX members regularly share that improving their control framework is becoming increasingly important for enhancing their management of operational risk.
The significance of having an effective and efficient control framework, and the impacts of either poorly designed or insufficiently implemented controls, can be seen in recent stories from ORX News, where control-related failures have either been the direct cause of an operational risk loss event, or have significantly exacerbated the impacts.
In this context, ORX held a session for members to discuss four key elements relating to the operational risk management control framework: documentation, attributes and categorisation, recording and capture, and review and testing.
This short report provides an update on the current industry position and practice surrounding controls. Available to all ORX members, this update can also serve as a useful guide or benchmark for members.
Related stories from ORX News
- Chee Tak Securities fined HKD 2 million for failure to monitor and record trades
- Goldman Sachs to pay USD 3.2 million over inadequate volatile trading supervisory system
- Trygg-Hansa fined SEK 35 million for data security control failures exposing customer data
- Wells Fargo to pay USD 75 million for charging excessive advisory fees on legacy accounts
- HSBC pays and provisions USD 1.11 billion for alleged manipulation of FX benchmark rates
- Volksbank to pay EUR 4.5 million for miscalculating risk-weighted assets
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Head of Risk Management, ORX
Assistant Research Manager, ORX