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:
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
- 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