Operational Risk and Resilience

impact upon objectives. It is measured in terms of

consequences and likelihood.

Risks are uncertain future events which could influ-

ence the achievement of the organization’s objectives,

including strategic, operational, financial and com-

pliance objectives.

Risk defined this way can be linked to ‘return’, which is

consistent with, for example, the views of the Institute of

Chartered Accountants in England and Wales in its 1999

paper on the management of risk (the Tu rn b u l l

Committee, 1999).

Risk management principles – objectives

Risk may be thought of as embodying issues that either hinder

or enhance the achievement of an organization’s objectives. ...