Drive Better Business Decisions Through Operational Risk Management (ORM)

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Mitigate the risks that arise from the execution of your organization’s business functions with RiskOversight.

AuditBoard makes it easy for us to reach out to every risk owner and get a quick update on their action plan. Our team can quickly summarize those risks, report up to the board and to leadership, and just keep risk top of mind for the enterprise and for the executive leadership team.

Brian Wueste

Director of Internal Audit

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Top Benefits of Operational Risk Management

Improved Reliability

Through monitoring the risk of how your organization conducts business, successful ORM programs improve the reliability of business operations.

Stronger Decision Making

Insights into top risks of daily operations allows organizations to strengthen the decision-making process where risks are involved.

Reduction in Future Losses

Improved controls and monitoring activities can equip organizations to identify potential risk events before they cause losses.

What Is Operational Risk Management (ORM)?

The primary objective of operational risk management (ORM) is to mitigate risks related to the daily operations of an organization. Essentially, operational risk is the risk of doing business. While operational risks may seem minimal to some, if left unmitigated, they have the potential to lead to greater risk materialization and significant company damage. Operational risks have a chain reaction and while they may appear finite in silo, they could be fatal to an organization down the road. The practice of operational risk management focuses on operations and excludes other risk areas such as strategic risks and financial risks.

What Is Operational Risk Management? The Overview

What Is Operational Risk Management? The Overview

Who Needs Operational Risk Management?

Operational risk management impacts all levels of the organization, from the board of directors and senior management to business operation leaders. When implemented successfully, ORM programs can act as a critical tool for the C-suite. Well-informed C-suites can then leverage the operational risk management process to drive competitive advantage through achieving transparency of top risks and encouraging stronger investments.

What Is the Purpose of Operational Risk Management?

ORM aims to mitigate the risk of loss from inadequate or failed internal processes, people, and systems, or external events. More simply, it is addressing the risks that arise from the execution of an institution’s business functions. Given this viewpoint, the scope of operational risk management encompasses cybersecurity, fraud, and nearly all internal control activities.

How Can I Manage Operational Risk with AuditBoard?

RiskOversight integrates and elevates your operational risk management program — including the identification, assessment, response, mitigation, and monitoring of risks — in a highly visual and intuitive way. RiskOversight enables integration of operational risks across your organization and allows users to gain insight into top risks and risk trends, including executive-level dashboards and detailed board of director reports that provide a holistic view of your overall risk appetite.

Resources

Operational Risk Management Resources

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