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Operational Risk Management and Business Performance

In the video below from Mash Risk Television, Brian Barnier of ValueBridge Investors discusses the difficulty that organizations, specifically financial firms, have in moving from compliance-based view of risk to an operational-based view.

It’s an understandable hurdle considering how many companies only started thinking about some of this stuff systematically as a result of Basel II or Sarbanes-Oxley and thus view the whole endeavor as little more than a useless burden to check off a series of boxes. Organizations just don’t see the value. Even in 2011, after the largest financial meltdown since the Great Depression, too many companies still can’t find the tangible, bottom-line benefits of instituting a worthwhile risk management system that views meeting regulatory requirements as a starting point rather than an end goal. Which is a shame.

Because as Barnier gets at in the video, those companies that can’t start thinking about risk management as a key driver in overall performance are probably going to find themselves behind the curve pretty soon. Plenty of other companies are already doing it — and in the process, fortifying their earnings against potential threats.

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1 thought on “Operational Risk Management and Business Performance

  1. Thanks for sharing Jared, Also, I feel in operational risk management endeavors, loss events management also plays an important role in the overall risk management.

    In this regard, Lera Technologies extends its services around TASSO – The Operational Risk Management Solution, we are glad to propose Loss Event Management Module as an introductory offer to banks. Please reach me at sesikanth.d@leratechnologies.com

    Please visit: http://tassoorm.leratechnologies.com/Solutions/loss-event-management.html

    Hope this helps!!

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