Appunti completi di Operations Risk Management

OPERATIONS RISK MANAGEMENT

• 1. PERSONAL EXPOSURE
  • How to escape
  • PPE (mask, hood, etc.)
  • Communication
  • Unfamiliar environments
• 2. OPERATIONAL TASK
  • SC compliant task
  • Certification authority
  • Top event
  • Lost training
  • Self check
• 3. PERMANENT NEW WORLD EXPOSURE
  • Daily checklists
  • New circumstances
• 4. LOCAL GOVERN RISK MANAGEMENT
  • Governance framework
  • SC IEC observations
  • Harvest mini exercises
• 5. OPEN UPON RISK MANAGEMENT FRAMEWORK
  • XYZ participation
  • Minimum 3 yr limits
  • STS strategy
  • Action to be undertaken
• 6. NEW ENVIRONMENT
  • XYZ possibilities
  • Iterations of current actions

OPERATIONS RISK MANAGEMENT

• 1. POTENTIAL OPERATIONAL LOSSES

  • Business Continuity
  • Insider Fraud
  • Internal Misconduct
  • COS Detection
  • Management Actions

• 2. OPERATIONAL RISK

  • Cost Control
  • Processes
  • Apps
  • Performance Metrics
  • SC Execution & Monitoring
  • Third Party Outsourcing

• 3. NON-FINANCIAL RISK — FRAUD, CYBER, SECURITY, INSTITUTIONAL

  • Infrastructure
  • Cyber Security
  • Risk & Fraud Management
  • Young clients choosen
  • Operations & Oversight

• 4. ASSET CLASS RISK MANAGEMENT

  • Security Strategy
  • Security Program Management
  • DCI Assessment
  • DCI Portfolios

• 5. ASSET CLASS RISK MANAGEMENT - REFINEMENT

  • Operations & Oversight
  • Documentation
  • DCI Operational Risks

• 6. CLIENT COMMUNICATION

  • Risk & Advice
  • Products & Transfers
  • Investment Outcomes

Operations Risk Management

Evolution of Operations Management

Traditionally, lots of uncertainty affected the performance of company's operations and competitiveness.

• Market growth
• Technological innovations
• Material/energy prices
• Supplier behaviors

To cope with risks in the past:Risks were just a negative implication.

Disadvantages from buffering operations:

• Communication delay between operations and other functions makes change difficult.
• Operations meet demands by overestimating the environment with no exploration of opportunities which it creates.
• Operations is never required to take responsibility for long-range impacts of its actions.
• Physical buffering often involves transferring large stocks of input or output resources.

Operational risks in buffered operations (old view)

• Operations smooths out flows to achieve production objectives in a well-known stable context, secured by other functions.
• Operations is only aligned with short-term objectives, given the expected context.
• Effective performance management shifts to identify what is the best way to achieve objectives, given the expected context.
• There are uncertainties to manage but only disturbances that deviate the operations away from normal functioning.
• Disturbances and concerns for operations managers are only those residing within the end process, modified by market demand or production assets.

Reason & Wilson Model

• Hardware failures (storage, memory bank)
• Failures from operations errors
• Consequences in terms of system requirements
• Consequences in terms of production requirements

Disruption to production systems, human intervention is required.

• Technical failures
• Organizational failures
• Operations errors
• External factors
• Design-related failures

Reactive Approach

You upgrade your production just after a bad result.

New Approach to Risk Management

Because of increasing complexity (dynamism and uncertainty) of competitive context:

• Competitiveness depends also on the new approach to risk impact absorbed by the company.

• Climate