
Competition adds to the pressure to improve operational risk
management. Sound risk management will become synony-
mous with good customer service – accurate data, timely
response, few errors or disputes, solid ethics, and the comfort
of dealing with a firm with a good reputation. The conse-
quences of not having a good operational risk management
programme can be extreme – from falling volume to ultimate
failure or being forced to accept a merger or acquisition.
Regulators are looking for a comprehensive risk management
framework and capital allocation methodologies that recog-
nize operational risk and create the right internal behavioural
incentives. ...