The Rules of Operational Risk

more+
less-

IN THIS ARTICLE

Framework

Controlling Credit Risk

Four Basic Rules

Six Even More Basic Rules

Articles and Newsletters

__________________________________________

Framework

First and foremost, compliance decisions should be made not only on the basis of sound policy and regulatory mandates but also on the basis of how compliance procedures are viewed by regulators. Examiners want to see a financial institution enforcing existing regulatory requirements. However, they also are not antagonists on a witch hunt. They honestly want to product the kind of findings - good or bad - that will help a company to thrive. They do not get a thrill out of putting forth adverse findings.

Building a solid framework begins with cataloging the company's people, processes and technology, and continues on into deriving the means by which a stable policy is designed to formalize the way the the company tracks operational risk and identifies those risks within the organization's personnel and departments. Tasking, tracking, and managing risk are central features of governance.

Companies large and small should implement operational risk frameworks that formalize their operational risk management. There really is no excuse, in this day and age - especially with ready access to information and guidance - that any size financial institution cannot position operational risk practices into the loan flow process.

Risk can't be managed if there is no framework through which to manage it.

Reviewing and formalizing an operational risk framework does not need to be a complicated exercise. The size, complexity, and risk profile will dictate the ways and means by which risk is managed.

DOWNLOAD THE ARTICLE

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Jonathan Foxx, Lenders Compliance Group | Attorney Advertising

Written by:

more+
less-

Lenders Compliance Group on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×