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Article: Managing operational risk.(risk management in financial services)
- Article from:
- Financial Advisor
- Article date:
- May 26, 2005
CopyrightCOPYRIGHT 2005 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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If companies are to be successful in meeting the FSA's stated requirement of "seeing approaches to operational risk that enhance business operations rather than solely meet regulatory requirements", then it will be vital to implement risk management processes that can identify, assess and monitor HR risks wherever they may occur.
In its feedback document Building a Framework for Operational Risk Management (July 2003), the FSA noted that operational risk management processes were focusing on process and systems rather than people risk. Furthermore, they pointed out that there was a need for a much more proactive approach to managing operational risk.
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