Operational Risk Management

RMA has been at the forefront of the development of the operational risk discipline since 2003. Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events, but is better viewed as the risk arising from the execution of an institution’s business functions.  Operational risk exists in every organization, regardless of size or complexity from the largest institutions to regional and community banks. Examples of operational risk include risks arising from hurricanes, computer hacking, internal and external fraud, the failure to adhere to internal policies, and others. For much of the past decade, the industry has been focused on measuring operational risk losses for capital allocation purposes, but in recent years has increased the focus on managing operational risk.

RMA serves operational risk practitioners in large institutions, as well as regional and community banks, at both the corporate level and the business line. RMA provides peer sharing, professional development and networking opportunities for our members through discussion groups, conferences, round tables, classroom training events, and Web seminars. RMA also undertakes surveys, benchmarking studies, and range of practice papers. In addition, RMA’s AMA Group shares industry views on aspects of AMA implementation with the U.S. financial services regulatory agencies toward a goal of successful AMA implementation. The RMA Journal® regularly carries articles on operational risk topics, and RMA also publishes an operational risk e-newsletter.

Operational Risk Eletter

Operational Risk Framework

Conferences and Discussion Groups

• Advanced Measurement Approaches Group
• GCOR VII: RMA's 7th Annual Governance, Compliance, and Operational Risk Conference
• Operational Risk: The Business Imperative at The RMA Annual Risk Management Conference
• ORMDG: The Operational Risk Management Discussion Group

Round Tables

• Enterprise and Operational Risk Reporting
• Global Chief Operational Risk Officers
• Regional Bank Operational Risk Officers
• Risk Governance
• Risk Reports
• Risk Assessment Processes (including Top and Emerging Risks)
• Operational Risk Large Banks

Industry Position Papers

• Scenario Analysis (SA IPP 2 ) (PDF)
• Scenario Analysis (SA IPP 1) (PDF)
• Business Environment and Internal Control Factors (BEICFs) (PDF)
• AMAG Views on Unit of Measure and Dependence (PDF)
• Internal Capital Adequacy Assessment Process (ICAAP) (PDF)

Publications

• The State of Discipline. Survey Results (2008)
• The State of Discipline. Survey Results (June 2007)
• Governance, Risk, and Compliance (February 2008)
• The Operational Risk Handbook for Financial Companies: a guide to the new world of performance-oriented operational risk. Order your copy today from Harriman House using this link to receive a %50 discount.

Surveys and Studies

Courses – Curriculum Tracks

• Fundamentals of Operational Risk
• Identification and Assessment
• Data Collection, Measurement, and Monitoring
• Reporting
• Control, Mitigation, and Management
• The Broad Spectrum

Recorded Web Seminars

• Deterring and Responding to Robberies
• Deterring and Responding to Robberies DVD
   

Comments or questions relating to Operational Risk Management within RMA can be addressed to Ed DeMarco, Director of Operational Risk or Sylwia Czajkowska, Associate Director, Operational Risk.