Global Perspectives on Operational Risk Management and Practice: A Survey by the Institute of Operational Risk (IOR) and the Center for Financial Professionals (CeFPro)

42 Pages Posted: 10 Dec 2018

See all articles by Gareth Peters

Gareth Peters

Department of Actuarial Mathematics and Statistics, Heriot-Watt University; University College London - Department of Statistical Science; University of Oxford - Oxford-Man Institute of Quantitative Finance; London School of Economics & Political Science (LSE) - Systemic Risk Centre; University of New South Wales (UNSW) - Faculty of Science

George Clark

The Institute of Operational Risk

John Thirlwell

The Institute of Operational Risk

Manoj Kulwal

The Institute of Operational Risk

Date Written: December 7, 2018

Abstract

This survey represents a comprehensive perspective on operational risk practice, obtained from practitioner in a wide range of countries and sectors. It was developed and executed by two leading organizations in operational risk in the financial services industry: the Institute of Operational Risk (IOR) and the Center for Financial Professionals (CeFPro). This academic paper is a more detailed analysis of the industry report that was jointly created by these organizations. The goal of the survey and its subsequent analysis was to develop an understanding of the dynamic and evolving nature of operational risk management practice from the perspective of industry practitioners. We sought out a large cross-section of industry sectors to capture a truly global view of the discipline’s responses. In this regard, we focused on developing a survey that would facilitate a greater understanding of the following core aspects of operational risk practice, both at present and with regard to future possible directions:

• the current best practices and approaches to operational risk;
• the tools and skills being applied in practice;
• the discipline’s current status in different regions and sectors; and
• the directions the discipline may go in future.

The survey was designed by the authors of this paper on behalf of the IOR and facilitated and collated by CeFPro.

Keywords: operational risk, risk management, machine learning, clustering, artificial intelligence, regulatory technology

Suggested Citation

Peters, Gareth and Clark, George and Thirlwell, John and Kulwal, Manoj, Global Perspectives on Operational Risk Management and Practice: A Survey by the Institute of Operational Risk (IOR) and the Center for Financial Professionals (CeFPro) (December 7, 2018). Journal of Operational Risk, Vol. 13, No. 4, 2018. Available at SSRN: https://ssrn.com/abstract=3296279

Gareth Peters (Contact Author)

Department of Actuarial Mathematics and Statistics, Heriot-Watt University ( email )

Edinburgh Campus
Edinburgh, EH14 4AS
United Kingdom

HOME PAGE: http://garethpeters78.wixsite.com/garethwpeters

University College London - Department of Statistical Science ( email )

1-19 Torrington Place
London, WC1 7HB
United Kingdom

University of Oxford - Oxford-Man Institute of Quantitative Finance ( email )

University of Oxford Eagle House
Walton Well Road
Oxford, OX2 6ED
United Kingdom

London School of Economics & Political Science (LSE) - Systemic Risk Centre ( email )

Houghton St
London
United Kingdom

University of New South Wales (UNSW) - Faculty of Science ( email )

Australia

George Clark

The Institute of Operational Risk ( email )

2 Old College Court
29 Priory Street
Ware, England SG12 0DE
United Kingdom

John Thirlwell

The Institute of Operational Risk ( email )

2 Old College Court
29 Priory Street
Ware, England SG12 0DE
United Kingdom

Manoj Kulwal

The Institute of Operational Risk ( email )

2 Old College Court
29 Priory Street
Ware, England SG12 0DE
United Kingdom

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