The state of operational risk management: An industry fighting itself?

Abstract

Risk management is not an issue that falls on the shoulders of any single group, industry sector or operational function. While there remains a great deal of focus and agreement surrounding needs and issues, in practice, firms and individuals tend to focus on siloed, non-holistic quick fixes; other industries seem to have much more complex problems with which to deal, but yet have jointly developed real, long-lasting solutions. This paper examines the factors that hold back the finance industry from realising such solutions, and addresses what needs to be done to tackle the risk issues that are facing the industry of today and tomorrow.