Ormma

Operational Risk Management Maturity Review

Operational Risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.The Elmore ORMMR review assesses the framework within an organisation against best practices for the effective management of operational risk.

The report will assess the maturity of the framework and provide recommendations on how this can be approved, in line with the size and complexity of the business.  An organisation can determine whether it wishes to adopt these, and where necessary Elmore can assist in developing appropriate policies and/or procedures.

Note; at this stage this is simply an assessment of the framework in place and will not deep dive into the actual risks to which the business is exposed.  This can be conducted if necessary, by facilitating an Operational Risk Control Review (ORCR).

Culture is Key

Key principles of the review will determine the extent of Corporate and Risk Culture within the organisation:

Corporate Culture

The Board of Directors and Management has established a corporate culture that incorporates robust risk management and that supports and provides the necessary standards and incentives for professionals and responsible behaviour

Risk Culture

The organisation has developed, implentmented and maintained an Operational Risk Framework which is commensurate with its business, size, complexity and risk profile. A risk Register exists to prioritise the key risks and controls in place to mitigate them.

The ORMMR will include a review of the following:

  • Any mechanisms by which the Board has set the tone for Conduct of Business
  • The Governance structure in place for operational risk
  • How Management has implemented and oversees operational risk processes
  • How risks are identified and assessed
  • Monitoring and Reporting mechanisms

The deliverable of an ORMMR
review will be:

  • An assessment of the maturity of the organisation’s Operational Risk Management framework. Basic (Reactive), Adequate (Structured), Advanced (Proactive)
  • Detailed recommendations of opportunities for management to consider for improving the framework
  • Where appropriate an agreed action plan on which recommendations will be implemented and a time bound plan for their completion

APPLY FOR AN ORMMR REVIEW