
Operational risk and business change
Over the last two decades, organizations in most sectors have
found it necessary to embrace a programme of almost constant
change, encompassing downsizing, business process reengi-
neering, new quality management, mergers and acquisitions
activity, outsourcing, and so on. Experience has shown that an
organization’s exposure to operational risk tends to increase as
the rate of change increases and individual change initiatives
interact with each other creating an impact at the level of the
organization. The rate of change can alter the risk profile of an
organization and by doing so, catch management and staff by
surprise. ...