Operational risk management shouldn't just begin with avoiding pitfalls and minimizing losses. That's the first step in the process; the ultimate goal is to develop an operating model that not only mitigates risks but also fosters resilience, efficiency, and growth.
New technologies bring new concerns, regulatory environments are constantly evolving, and resilience to unexpected events is becoming a strategic priority. However, as cost pressures increase, striking a balance between effectiveness and efficiency in operational risk management becomes a crucial and challenging task.
Branchout's Operational Risk and Resilience Approach
Best risk management practices provide companies with a competitive advantage. They not only prevent disruptions but also improve processes, increase operational resilience, and create value. Successful risk management requires the right governance, processes, roles, and culture. In short, establishing an operational risk management model that is prepared for tomorrow's uncertainties and rapidly supports innovation is essential.
To help companies, we've developed a unique operating model that combines our deep operational risk expertise with functional and technical expertise. We work with companies on everything from organizational design to artificial intelligence, addressing every aspect of operational risk management, from risk classification to the complete transformation of the risk management function.
Operational risk encompasses a wide range of risks arising from a company's processes, people, and systems. Understanding the risks and their extent is crucial. We help our clients develop a risk taxonomy to identify potential risks and assess them based on probability and impact. This assessment enables companies to determine the appropriate risk level for each type of operational risk and develop a risk strategy aligned with their business strategy.
Success in operational risk management relies on clearly defining roles and responsibilities across the three lines of defense (field managers, the risk function, and internal and external auditors). We help our clients define decision-making rights and strike the right balance between authority and control. This allows operational risk management to be implemented effectively without slowing down daily operations.
At the heart of the operational risk management model are mechanisms for assessing, mitigating, and monitoring risks. We develop processes, guidelines, reporting, and testing mechanisms to help organizations focus on potential and emerging risks and take the right action at the right time. We identify areas where technologies like risk analytics and artificial intelligence can improve effectiveness and establish the necessary controls to ensure the smooth operation of the risk management function.
People, technology, and culture are key components and catalysts in any risk management model. We help leaders set the right tone and create a culture where operational resilience is a strategic goal. We also leverage the power of data and AI to leverage predictive analytics, enabling faster and better operational risk decisions.
