Operational risk management Edition: 4

The Covid-19 pandemic proved yet again the importance of operational risk management, as organisations that had paid more attention to this aspect of their operations were able to deal more effectively with the resultant risk exposures. As a value-adding activity, operational risk management can have both a direct and indirect impact on the bottom-line performance of an organisation. It is fundamentally concerned with good governance, and involves consistent alertness and continuous improvement. Operational risk management will assist organisations to develop and implement an operational risk management framework that will support the achievement of business objectives and increase preparedness for major incidents that could have a negative impact on them.