Development and Implementation of an Operational Risk Management Framework Aligned With ISO 31000

2012 ◽  
Author(s):  
David Weir ◽  
Susan Urra
Keyword(s):  
Risk Management ◽  
Cultural Change ◽  
Operational Risk ◽  
International Standards ◽  
Management Framework ◽  
Operational Risk Management ◽  
Risk Management Framework ◽  
Early Results ◽  
Risk Management Process ◽  
Iso 31000

The International Standards Organization (ISO) standard 31000 (Risk Management – Principles and Guidelines) provides guidance on the development of a systematic approach to managing risk within an organization. Using ISO 31000 as a guide, Enbridge Pipelines has enhanced its existing release-focused risk-informed decision-making approach and risk management process. The development of this enhancement has involved engagement of all levels of management and staff, and has required consideration of corporate cultural change, staff communication and training, development of performance measures, and management reporting. This paper provides a high level overview of the ISO 31000 standard as it pertains to its use in the development of the Enbridge Pipelines operational risk management framework, the roadmap for implementation of the framework, and discusses the challenges, successes, learnings, and early results of implementing the framework in a large multi-national pipeline company.

Implementing an Operational Risk Management Framework: Psycho-Social Factors in Tanzania

2012 ◽  
Vol 22 (1) ◽  
pp. 77-86 ◽  
Author(s):  
Annelize van Niekerk ◽  
Dirk J Geldenhuys ◽  
Madia M Levin ◽  
Michelle May ◽  
K.P. Moalusi
Keyword(s):  
Risk Management ◽  
Social Factors ◽  
Operational Risk ◽  
Management Framework ◽  
Operational Risk Management ◽  
Risk Management Framework

scholarly journals A proposed operational risk management framework for small and medium enterprises

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Micheline J. Naude ◽  
Nigel Chiweshe
Keyword(s):  
Risk Management ◽  
Small And Medium Enterprises ◽  
Relevant Literature ◽  
Management Strategies ◽  
Operational Risk ◽  
Management Framework ◽  
Operational Risk Management ◽  
Operational Risks ◽  
Risk Management Framework ◽  
Medium Enterprises

Background: The gap between small and medium-sized enterprises (SMEs) and large businesses that perform risk assessment is significant. SMEs continuously face many operational risks and uncertainties in their daily operations, and these risks threaten to reduce productivity, increase costs and reduce profits.Aim: The purpose of this article was to develop an operational risk management framework that SMEs can use to identify and analyse risks in their operations and take corrective actions to mitigate these risks.Setting: Small and medium-sized enterprises in South Africa do not view risk management as a key component of organisational success, despite evidence that businesses that adopt risk management strategies are more likely to survive and grow.Methods: The article is exploratory in nature, and a conceptual analysis approach was used to formulate the framework. This study reviewed relevant literature sources on risk published between 2002 and 2017.Results: The four process steps of risk management were used as a reference point and form the foundation for the operational risk management framework. The categories of operational; marketing; technical and financial risks were identified from a review of available literature on risk management.Conclusion: There is a dearth of research that deals with operational risk management frameworks for SMEs. The expected contribution of this article, therefore, is twofold: firstly, it is envisaged that managers or owners of SMEs could use the proposed framework as a tool to appraise and minimise their operational risks; secondly, it will add to the current body of knowledge on risk appraisal for SMEs.

scholarly journals Challenges facing banks in emerging countries to be Basel compliant for operational risk

2008 ◽  
Vol 5 (3) ◽  
pp. 284-290
Author(s):  
Jackie Young
Keyword(s):  
Risk Management ◽  
Operational Risk ◽  
Central Banks ◽  
Emerging Countries ◽  
Practical Approach ◽  
Basel Accord ◽  
Management Framework ◽  
Operational Risk Management ◽  
Risk Management Framework ◽  
Critical Issues

The New Basel Accord identified various requirements for an effective operational risk management framework. Most central banks and regulators adopted these requirements for their own banking environments. However, there are many challenges facing these banks to ensure the effective incorporation of such a framework. An end-result of establishing an operational risk management framework is to calculate and allocate a realistic capital charge for operational risk. To achieve this, various principles and methodologies must be embedded that will ensure a practical approach to operational risk management. This paper aims to identify certain critical issues and challenges for banks of emerging countries to consider when developing an operational risk management framework in order to comply with the Basel requirements.

scholarly journals MANAGEMENT OF OPERATIONAL RISK COSTS: DEALING WITH CONFLICTS OF INTERESTS AND SENSITIVE CLIENT SITUATIONS IN AUDIT FIRMS

2019 ◽  
Vol 17 (Suppl.1) ◽  
pp. 504-510
Author(s):  
Stoyan Deevski
Keyword(s):  
Risk Management ◽  
Conflicts Of Interest ◽  
Operational Risk ◽  
Conflicts Of Interests ◽  
Management Framework ◽  
Operational Risk Management ◽  
Risk Management Framework ◽  
Audit Firms ◽  
Policies And Procedures ◽  
Comprehensive Survey

The purpose of this paper is to look into the challenges of management of potential operational risk costs by dealing with conflicts of interests and sensitive client situations in audit firms. Furthermore, the author’s goal is to propose a framework addressing those risks proactively and thus minimizing the potential costs that might arise from such situations. The paper starts with an introduction to the importance of understanding the concepts of conflict of interest situations and sensitive client situations, and why it is often crucial for the leadership and professionals working for audit firms to address the risks arising from them. The author presents a framework, containing policies and procedures for operational risk management with respect to conflicts of interest and sensitive client situations. The proposed framework is tested via a comprehensive survey among a number of audit firms. The results of the survey show that all of the surveyed companies have implemented at least some of the proposed policies and procedures. The results also show that there is a general agreement among the leadership teams of the audit firms that adopting a comprehensive operational risk management framework would benefit the audit firms in the long term minimizing its costs.

scholarly journals Development of methodological approaches to establishing an integrated risk management framework for leasing transactions in Ukraine

2017 ◽  
pp. 49-63
Author(s):  
Anzhela Kuznietsova ◽  
Oleksandr Levchenko
Keyword(s):  
Risk Management ◽  
Product Life Cycle ◽  
Risk Mitigation ◽  
Management Framework ◽  
Risk Management Framework ◽  
Integrated Risk ◽  
Credit Mechanism ◽  
Risk Management Process ◽  
Low Efficiency ◽  
Integrated Risk Management

Based on studies of domestic and foreign researchers, the article gives a modified and extended classification of risks related to leasing transactions which includes a new classify cation attribute ‘by types of leasing activities’ (in terms of risk management). Risk mitigation techniques for leasing transactions are described in detail, as well as their essence, ways of introducing and expected outcomes. The advantages of securitization are summarized and key reasons for low efficiency of this method in the domestic leasing market are identified. For these reasons, the domestic stock market is less developed and Ukraine’s current legislation on leasing is imperfect. It is pointed out that success in development of Ukraine’s financial market relies on the growth of leasing along with the efficiency of financial and credit mechanism that supports leasing transactions and determines the quality of risk management framework as an integral part of such a mechanism. The process of risk management for leasing transactions is formalized. A comparative analysis of fragmentary and complex approaches applied in Ukraine towards establishing a risk management framework for leasing companies is undertaken. The paper justifies the necessity of establishing an integrated risk management framework for leasing transactions as part of financial and credit mechanism that supports leasing transactions. The need for establishing such a framework is driven by the following market trends: globalization; increased competition; company consolidation; product standardization; product life cycle decrease; technological innovation; increased attention to risks given by the state, society, stockholders and board of directors. It is stated that establishing an integrated risk management framework for leasing transactions involves the following progressive steps: setting goals and targets, identifying and evaluating risks, planning for potential risks, monitoring risks and introducing risk management process. The article highlights the main goal of an integrated risk management framework for leasing transactions, long-term tasks for achieving this goal, major function that the framework should perform and principles that it should preserve.

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