Winning with Risk Management: Focus on Operational Risk

Operational risk in financial service firms is largely self-inflicted and the losses mainly preventable. Below, Russell Walker suggests that firms should be proactive about operational risk management and in doing so seek to develop competitive advantages in operations. The current regulatory spotlight on banks' operations continues to illustrate the importance of processes, especially those that impact customers and markets. Recent fallout for the industry has included new regulation, a downturn in public sentiment towards financial firms, and large and numerous fines imposed on banks for various customer-facing actions, stemming from operations and practices.