More Context Into Operational Risk Drives Better Decisions
Operational risks to business might come from any number of places – accidental human error, supply chain disruptions, IT system failure, and more – but they are inherent to every organization. Operational risk management is top of mind for risk professionals, due to trends of increasing government oversight and heightened expectations of accountability, in addition to the ongoing impact of the pandemic.
Operational risk is dynamic. Contextual information and multiple datapoints are needed to identify and respond to this type of risk. Unfortunately, traditional risk management methods can only manage one or two areas of risk, such as cybersecurity, but lack inputs and outputs with other relevant areas – such as informing the learning and development department to train employees on security procedures. Managing operational risks requires an integrated approach.