Operational Risk and Resilience

Introduction

To be effective, operational risk management needs to find

expression in an organizational framework. Until now, man-

aging operational risk in any systematic fashion has been very

difficult. Although line managers may have been well inten-

tioned in controlling risk in their separate functions, the

absence of frameworks and all-round risk awareness from an

enterprise-wide perspective has made it difficult to mitigate

risk in any systematic sense.

There are two approaches to establishing effective operational

risk management frameworks. The first considers the practical,

basic reasons why frameworks are essential. For example, a

framework should ...