Operational Risk Management and Measurement

REPORT PREVIOUSLY PUBLISHED BY OLIVER WYMAN
July 14, 2015
Industry Trends
Global

Abstract

Joint survey by ORIC International and Oliver Wyman

Operational risk management plays a crucial role in the success of all financial institutions, including insurers. Several recent events in the broader financial services industry have brought operational risk, and, in particular, conduct risk to the forefront of the regulatory agenda. ORIC International and Oliver Wyman jointly conducted a survey on operational risk management and measurement, with the objective to further understand and identify current and best practices in operational risk management insurers need to get right to create competitive advantage.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Foreword

2

Executive Summary

5

1 Introduction

7

2 State of the Industry and Firms’ Priorities for 2015

8

3 Organisation and Governance

9

4 Culture and Conduct

10

5 Risk Identification and Assessment

11

6 Risk Event Data Capture

12

7 Internal Control

13

8 Monitoring

14

9 Business Decision Making

15

10 Business Resiliency

16

11 Risk Measurement

17

12 Systems

18

Concluding Remarks

19

Appendix A — Participant Profile

20

Appendix B — Survey Participants

21

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