How can you use operational risk metrics to identify training needs?

Harness advanced data analytics techniques to extract actionable insights from operational risk data. Implement machine learning algorithms and predictive analytics to identify patterns, trends, and potential risk triggers.

Operational risk events are unavoidable, but implementing a structured defense line involving both managers and employees can diminish the impact and frequency of such events. Additionally, having insurance is essential to mitigate the impact of unforeseen occurrences.

By reviewing metrics such as incident reports, customer complaints, and performance benchmarks, areas of high operational risk can be identified. Conducting a root cause analysis and considering compliance requirements can further pinpoint knowledge or skill gaps that necessitate training. Additionally, employee feedback and engagement data should be assessed to gain insights into specific training needs. By leveraging operational risk metrics, organizations can tailor training programs to address identified gaps and further mitigate risks.

You need to understand what you are protecting. When you decide to run a business, you need to understand that what is at stake. Depending on your business it will vary what operational risk you are taking and which assets are at risk, but there are nine generic categories of risk objects you have to consider: Reputation Integrity Financial Tangibles Humans Ability to deliver Environment Information Relations You also have to understand that some of the assets you are protecting are not yours, but owned by your customers, employees, suppliers, owners or society. When you understand what you can loose, then you can start thinking about how you can loose it and work om your KRI’s and KPI’s

Walk the floor and ask the employees. Look at policy violations and the response (I did not know). Speak with HR and Safty to see where the problems are occurring. Numbers can be misleading as they quantify what has happened, not what almost happened or what might happen.

Careful examination of operational risk metrics requires the use of robust statistical programs with proven reliability. It's crucial to have experienced statistics experts interpret the results. Reviewing historical cases and analyzing past events are vital steps in contributing to a forward-looking approach, demanding meticulous study.

Encourage multidisciplinary teams to collaboratively identify and address operational risk issues, fostering a holistic and proactive risk management culture.

To use operational risk metrics for identifying training needs, analyze data trends to pinpoint areas of high risk or frequent incidents. Focus on those areas to tailor training programs addressing specific risks and enhancing overall operational resilience.

From my experience, analyzing operational risk metrics requires robust statistical programs and seasoned statisticians. A forward-looking approach involves a careful review of historical cases. In operational risk control, prioritize data pertinence and quality to avoid misidentifying trends. Skilled data analysts and rigorous quality control measures are crucial, fostering a proactive risk management culture through multidisciplinary team involvement.

Peer review strengthens risk management skills by providing diverse perspectives, identifying blind spots, and validating strategies. It encourages continuous learning, effective communication, and the sharing of industry knowledge. The process also enables benchmarking, fostering professional networking and contributing to the development of more robust risk management practices.

Prioritizing ethics is paramount, and it serves as a foundational defense against operational risk. Establishing an ethical culture among employees is crucial. It's noteworthy that certain operational risk events have been attributed to internally trained staff, resulting in losses at times more substantial than those from external events.

Foster a culture of continuous learning within your organization. Provide access to resources, mentorship, and opportunities for skill enhancement to promote a proactive learning environment.

Operational risk metrics can provide insights to evaluate the effectiveness of training. When evaluating operational risk metrics, you can use the results to design or enhance training. As an example, if your organization has a metric with a higher rate of defects in a manufacturing process than the target, operational risk can complete a root cause assessment. These results can be used in training to reinforce key concepts or add new content with better explanations to reduce defective product outcomes. This would then be reflected in policy and procedures.

Stakeholders engagement and facilitated workshop are required in understanding training needs and should be considered alongside analysis of your operational risk metrics

Risk culture is fundamental to successful risk management. Everyone in a company need to be risk aware, and own and manage the risk that is relevant to their day to day.

Employee training should include regular assessments such as graded tests and assignments. Additionally, individuals in key roles or with decision-making authority must attain ongoing licensed certifications approved by regulators.

LMS's, expert engagements and above all mentorship are key in delivering key and lasting training to employees to be on top of their game

établir des formations annuelles avec un système de note qui permet de valider ou non la formation pour l’ensemble des collaborateurs.

Operational risks are typically risks with exists in the operations of the business. Humans are a critical part of the operations along with processes, systems and tools. Training both human and systems are key to ensure success of risk management & training needs can be identified by: 1. Trend analysis of operational near misses & materialize risks provides areas requiring training 2. Root cause analysis of design gaps, risks and misses provides trainings needs 3. Skill mapping and alignment with operations provides list of skills which are lacking 4. Mapping of future operations, future skills along with current skills provides list of skills needed & related training needs 5. Employee surveys, feedbacks identifies training needs

The previously unmentioned but crucial strategy involves ensuring competitive and rewarding compensation for employees in risk departments. Providing a satisfactory salary along with a supportive work environment enables employees to give their best to their organizations. This approach encourages loyalty and dedication, reducing the likelihood of employees resorting to theft or harming the company due to underpayment or persistent stress without motivation.

An important consideration is setting an appropriate "tone from the top" that identifying operational events and near misses will be treated as opportunities for learning and training, not as potential negative marks in annual reviews. This will foster a culture of openness and self-identification of training gaps.

Human resources KRIs are full of good insight that is customarily forgotten. Performance evaluation, especially for those who have a good time working for the company, may be an essential input to identify training needs. Soft skills are hard to find and can be wasted if individuals execute incorrect functions. Technical positions, leadership, and all other roles need to be updated. Using comparable measures (individual and peers, personal and last year performance analysis) will show you where training could be applied to improve careers, pivot to the right place, or enhance the work environment.

To foster an open culture of risk awareness, leadership and management have to send a clear message that metrics will be used developmentally and not punitively. All said and done, no set of operational risk metrics can be truly complete and the co-operation and active participation of the people on the line in self-identifying potential risks requires an open corporate culture.