What are the most common operational risks, and how can you prepare for them?

Burnout is a real issue in corporates. What I have learnt in my career: - Work-life balance must be reality. - Do not compromise your values and work-ethic, ever! - Negotiate your goals, do not set yourself up for failure. - Be empathetic with others and 'live' kindness, dignity and mindfulness, in other words, 'be the change you want to see in others'. - Remember: What others say about you is a reflection on them, not you! - Remember there are two ways to learn: from experience and from wisdom. Learning from experience can sometimes hurt but learning from others' mistakes is practical wisdom I can buy into. - And most importantly, if there is no fun and passion, you are probably in the wrong job!

AIOps is the newest way to begin to eliminate human error from operations. If you use Slack for your internal or external support you can build in bots and agents to respond, learn, auto triage and perform fix actions.

Detachment from your subordinates as a manager - If you are not aligned with your unit it's hard to implement a departmental culture and be able to guide your staff to operate as one force in achieving a singular goal. Good practice calls for regular checkups on a professional and personal level to help you understand your staff while maintaining the office dynamics of a superior and subordinate relationship.

Here are my strategies to mange the top 5 operational risk. Human Error- Implement comprehensive training and clear procedures. System Failures- Ensure regular maintenance and backups. Fraud and Theft- Strengthen internal controls and conduct regular audits. Regulatory Compliance- Stay updated on regulations and perform regular compliance checks. Cybersecurity Threats- Deploy robust cybersecurity measures and educate employees. By focusing on these areas, I believe we can protect our business and ensure smooth, secure operations.

Os riscos operacionais ganham propor??es inaceitáveis, quando o conhecimento dos objetivos dos trabalhos propostos, n?o s?o corretamente estabelecidos, com a certeza de que os atores no processo entenderam a miss?o proposta e principalmente, que estejam perfeitamente treinados e preparados para realizá-la.

Operational risk arises from ineffective or failed internal processes that can disrupt business operations. Here’s a perspective on how process failure impacts operational risks: 1- Financial Impact: Process failures can directly affect financial outcomes. For instance, a poorly managed business process might lead to lost sales opportunities or increased costs 2- Reputation Damage: When processes fail, it can indirectly harm an organization’s reputation. Poor customer service, data breaches, or other operational mishaps can erode trust and credibility Effective operational risk management is crucial to mitigate these risks and safeguard organizational success.

Staying ahead of potential failures is crucial. Outdated procedures or unforeseen disruptions can throw a wrench into even the most well-oiled systems. It's all about taking proactive measures. Robust monitoring + control systems are non-negotiable. These monitor operations, catching any hiccups before they escalate. But still, regular updates are key. By constantly updating processes, we not only boost efficiency but also fortify resilience against future challenges. When critical operations hit a snag, having a contingency plan in place ensures we can pivot swiftly. It's all about being prepared for whatever curveballs may come our way. While process failure may lurk around the corner, we can be armed with the tools to tackle it.

Provided that any of process steps failed in terms of availability, and/ or accuracy controls, alert shall be triggered so actions started right away.

In such a dynamic business world, I believe the key to success extends beyond having robust monitoring and control systems to mitigate the risks of process failures. It's essential to cultivate a culture of questioning within the team. Encouraging questioning not only fosters a mindset of critical thinking but also keeps our processes continuously reviewed. When we challenge the status quo, we open doors to innovation and opportunities for continuous improvement.

- Identifier les risques liés à chaque P&P permettant l'évaluation des contr?les nécessaires pour leur intégration au sein de l'ensemble des processus et des procédures. - S’assurer que les risques identifiés sont convenablement documentés et que des mesures sont prises pour réduire le niveau de ces risques. - S’assurer de la conformité par rapport à la règlementation en vigueur. -Fournir une documentation simplifiée permettant une compréhension et une assimilation facile par l’ensemble du personnel. -Mettre en ?uvre, le cas échéant, des actions de formations en relation avec les P&P, pour initier les utilisateurs finaux aux nouveaux processus, en vue de réduire le risque d'erreurs.

In the booming era of technology and its involvement in our everyday routines from communication, to personal use, to work, it is important for everyone to have a general understanding of technology use. In a business, having a quality IT infrastructure ensures that all relevant personnel in the business are able to log data to an accessible database, and have it displayed in a logical manner (via ERP, data reports, spreadsheets, etc.) and allow it to be manipulated to generate forecasts and handle production. In situations where you are using an ERP for production, having data backups easily accessible is key. Many ERPs store their data in SQL databases or similarly; with that, have scheduled backups periodically so it is easy to revert.

Identification of possible risks related to availability, confidentiality and integrity shall be analyzed and considered in risk register. The important ones related to business continuity requires to have adequate controls and alerts involving segregated party (cyber security position).

A tecnologia está presente em todas as empresas e entender a importancia dela em cada setor permite perceber o quanto ela pode escalar ou derrubar um negócio. Investir em uma boa estrutura e em bons profissionais de TI é necessário para qualquer empresa que queira se manter competitiva no mercado. Avaliar a terceiriza??o pode ser uma boa alternativa, pois permite investir em um servi?o especializado quando n?o há expertise ou mesmo or?amento para criar/ manter o próprio departamento de TI, ou até mesmo para reduzir custos.

Additionally, it's crucial to establish robust relationships with key external stakeholders, such as government agencies, industry regulators, and local communities. These partnerships can provide valuable resources and support during times of crisis, enabling a more coordinated response and faster recovery. Staying informed about emerging external threats through industry networks, news sources, and risk intelligence platforms allows for proactive risk management and timely adjustments to mitigation strategies. By considering the interconnection between your organisation and its external environment, you can enhance resilience and readiness to navigate operational risks effectively.

One thing I have found helpful is actually putting business continuity and disaster recovery plans to test. How often simulations can be done will depend on actual risk factors. Otherwise without stress testing, that plan will be mere document.

Having boundary defense has an integral role in this scenario. At higher maturity level, deep defense has dramatic effect to mitigate such risk category.

Para lidar com amea?as ao negócio é importante um olhar abrangente, quest?es de conflito - como guerras e climáticas, por exemplo, n?o costumavam ser consideradas em muitos negócios, mas hoje, com a globaliza??o os mercados podem ser dependentes em alguns momentos, assim é imprescindível entender que mesmo uma situa??o aparentemente distante, por sem em outro estado ou país, pode afetar o mercado, meu fornecedor e consequentemente meus negócios. Quando se trata de amea?as, até as mais improváveis devem ser tratadas com cautela.

Ensuring compliance with laws and regulations is key, yet breaches can happen if an organization doesn’t adapt to evolving legal requirements. To mitigate this operational risk: Compliance management System: Track regulatory changes: Stay informed about legal updates. Up-to-Date policies: Regularly review and adjust policies. Proactive approach: Anticipate compliance needs. Employee Training: Awareness: Educate staff on compliance responsibilities. Understanding: Ensure everyone comprehends their role. Proactive compliance safeguards your organization.

In order to keep the organisation compliant, Compliance team has to be proactive towards all the updates that are coming from Law Enforcement Agencies and their timely implementation becomes critical step which saves organisations from compliance breaches. Secondly ongoing staff training are pivotal for any organisation since compliance is the responsibility of all the employees of the organisation.

As fun??es compliance e jurídico devem trabalhar muito próximas, com o constante acompanhamento sobre a legisla??o aplicável (especialmente a eventuais normas regulatórias aplicáveis ao setor) e um ágil procedimento de comunica??o interna. Qualquer modifica??o do cenário legislativo que impacte nos processos internos deve ser levada ao conhecimento da Alta Dire??o com um plano de a??o específico para adapta??o das rotinas de trabalho - o que demonstra a importancia do compliance estar alinhado com as áreas de negócio.

Compliance breaches within organizations can have far-reaching consequences. Here’s a perspective on their impact: 1- Financial Losses: Non-compliance with regulations can result in monetary fines and legal penalties. Organizations may face significant costs due to data breaches or other violations. 2- Reputation Damage: A compliance breach erodes customer trust and harms an organization’s reputation. Rebuilding trust takes time and effort, affecting market value and customer loyalty. 3- Operational Disruptions: Breaches disrupt business operations. They require investigations, remediation, and reporting, diverting resources from core activities. Maintaining compliance is crucial for safeguarding data, trust, and overall business success.

As Viola??es de conformidade muita das vezes podem estar associadas a falta de uma cultura organizacional de risco ou erros humanos para as organiza??es devem promover ac??es de forma??o regular sobre os riscos operacionais

Financial losses pose a significant operational risk arising from fraud, theft, or inadequate financial management. You can safeguard your organization via the below tools: Financial Controls: Implement robust controls to prevent unauthorized transactions. Audit Trails: Maintain detailed records for transparency and accountability. Transparency: Foster openness in financial operations. Diversify Revenue: Explore multiple income sources to reduce dependency. Insurance Coverage: Ensure adequate coverage for unexpected setbacks. Proactive measures mitigate financial risks.

When performing your organization’s risk assessment and updating your risk register, you should consider the elements that you have implemented from the COSO Integrated Framework. Specifically, you should map the risks to objectives and develop an action plan to remedy any foreseen financial risks that may occur through business operations. Reviewing peer incidents and regulatory examination and enforcement reports provide insights into the experience of other similar organizations in the same business space and what they have had to respond to. Also, when evaluating risk, the potential of fraud occurring should be explicitly considered as part of the assessment.

Riscos operacionais que podem gerar perdas financeiras precisam de aten??o e controle. Além dos controles internos deve ser analisada a viabilidade de uma auditoria externa. Considerar um olhar imparcial e especializado pode ajudar a detectar pontos de melhoria, antecipar problemas e evitar potencial prejuízo ajudando inclusive na melhora dos controles do processo como um todo.

In addition to the common risks listed above, any reliance on a third-party organisation for seamless operations will be compromised if issues arise on the part of the third party.

In addition to all these is the past experience of the institution and its staff. An institution that has faced such risks in the past, in a significant proportion, and survived is by far stronger than one which has never experienced any. It is therefore important that lessons are learnt and documented in times of crisis. Doing that helps to avoid past risks or better manage them when the they arise. Institutions need to cultivate the habit of continuous learning even in the face of significant challenges. That is a sure way to their survival in the face of the challenging risks in their operating environment.

Some common operational risks & mitigation strategies: Human Error: Invest in extensive training programs. Stir double-checks among employees for accurate work. Automate & implement systems to reduce manual tasks. Update operational procedures regularly. Tech Risks: Maintain reliable & robust IT systems. Create backups plan & redundancy for key processes. Assess disaster recovery plans via regular testing. Business Process Risks: Continuously improve processes. Trace & treat weak points. Handle operational changes carefully. Internal & External Fraud: Strengthen internal controls & monitor transactions. Educate staff on fraud prevention. Regularly detect irregularities. Remember, effective risk management minimizes operational impact.

In addition to the previously mentioned common types of operational risks, we could also discuss: Reputation risks: which can negatively impact the company's image. Supply chain risks: which can lead to interruptions in the delivery of raw materials or products. Employee-related risks: involving performance issues, absenteeism, and conflicts. Health and safety risks: which can cause workplace accidents or illnesses.

El fortalecimiento de los controles sobre los procesos y definir políticas y manuales para mitigar el riesgo operativo es fundamental