Operational Risk Management identifies and controls the risks associated with all of the internal activities of an organisation.

There is a wide array of categories that can be classed as ‘operational’ activities and each have a different selection of risks that have the potential to halt operations which could prove costly for the organisation.

Operational Risk Management spans the entire internal operations of an organisation, below are just a few examples of many:

• ICT Risk Management
• Supply Chain Risk Management
• Human Resources Risk Management
• Recruitment Risk Management
• Transportation Risk Management

Each of these should be examined in turn as each are responsible for different areas of organisational activity. Whilst conducting Operational Risk Management, organisations must consider their current positions of each area and relate risks to each. For example, does the organisation rely on one supplier? What is the risk management strategy if this supplier goes out of business? If there isn’t one the consequences could be dire.