Operational Risk Management Software
What is Operational Risk Management?
Operational risk management (ORM) is the series of activities and processes an organization undertakes in order to mitigate the risks mentioned above. Some organizations, particularly banks, tend to classify enterprise-wide risks under “operational risk,” making ORM synonymous with enterprise risk management (ERM).
Operational risk encompasses all risk an organization faces during the course of its daily business functions. There are 5 main buckets of the root cause source of all operational risks:
- External – threats from people, entities, and environments outside the business, like financial markets and cyber attackers
- Processes – risks associated with flawed or failed internal processes and operations
- People – risks related to employees of the organization
- Relationships – vulnerabilities related to relationships with vendors, customers, etc.
- Systems – disruptions in technology or data, resulting from either failed or misused systems
Who is Vulnerable to Operational Risk?
Operational risk is inherent to all processes: product development, daily facilities maintenance, systems upkeep and upgrades, etc. Given all businesses have daily operations, all organizations are vulnerable to operational risk as well. By extension, every organization should also have a sound operational risk management software program. However individual organizations choose to understand operational risk, whether that be synonymous to enterprise risk or as focused mostly on processes, people and systems risks, it is always a very broad category.
On the other hand, operational risk is more specific for financial institutions such as banks and bank holding companies (BHCs – corporations that control one or more banks) who experience heightened operational risk through financial risks and tools such as financial models. Financial institutions must manage an additional subset of operational risk that organizations in other industries don’t: model risk. This results from the possibility that financial models (which simulate and test for a variety of financial situations and market conditions) stop functioning correctly. However, organizations across all industries can benefit from leveraging operational risk frameworks.
Achieve Operational Risk Management with LogicManager:
LogicManager provides the tools and resources designed to improve and streamline the entire operational risk management process, from pushing out operational risk assessments and using pre-built, configurable content to tracking key metrics and customizing reports for various stakeholders.
- Taxonomy Technology: Get a fully connected picture of your risk by connecting operational risk events, determine common root causes and tailor the mitigation process across all functions and silos.
- Centralized Repository: LogicManager is complete with a library of configurable templates, questionnaires, and industry specific risks.
- Monitoring and Tracking: Utilize pre-built templates of key risk indicators and key performance indications to track, test, and monitor metrics and trends.
- Third Party Integration: LogicManager enables easy data upload functionalities, API integration, and SSO technology.
- Intelligent Reporting: Using LogicManager’s powerful, intuitive reporting engine for custom reports.
- Risk and Control Self-Assessments (RCSA): Leverage this formalized operational risk management process to identify risks, evaluate their impact and likelihood and monitor associated controls across silos.
Get this solution.
If you’re already a LogicManager customer, you can contact your business analysts to activate this plugin! If you’re new to LogicManager, you can request a personalized demo to see our operational risk management solution in action.
- Cybersecurity Risk Assessment FrameworkLogicManager Analyst Team2019-01-22T13:35:36-04:00
- NIST RMF 2.0 Update (SP 800-37 Risk Management Framework Revision 2)Leah Gourley2019-06-18T08:59:37-04:00
- PCI DSS Compliance Software and ChecklistBernie Lapierre2019-01-22T13:36:36-04:00
- EU NIS Directive ComplianceLeah Gourley2019-04-02T13:46:16-04:00
- NIST Cybersecurity FrameworkLogicManager Analyst Team2019-04-19T16:30:36-04:00
- Customer Complaint Management SoftwareLogicManager Analyst Team2019-04-02T12:53:09-04:00
- Cybersecurity Incident Management Software and Response PlanLeah Gourley2019-04-02T13:44:59-04:00
- California Consumer Privacy Act (CCPA) ComplianceLogicManager Analyst Team2019-04-02T13:46:30-04:00
- User Access Review Software and TemplateLogicManager Analyst Team2019-01-28T13:30:22-04:00
- Software Asset Management (SAM) Tools | LogicManager SAM SoftwareLeah Gourley2019-06-25T14:48:34-04:00