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OPERATIONAL-RISK-MANAGEMENT4 MIN READ

Sort the Operational Event

Classify operational risk events into people, process, systems, and external-event pathways.

Sort each event into the dominant pathway that produced the exposure. Use the pathway that best explains where the control improvement should start. People Process Systems External event A trained approver overrides a warning because quarter-end volume is high. Two teams use different definitions for a complete customer file. A nightly batch job silently skips records after a configuration change. A storm closes the regional processing center for one business day. The exception queue has no owner once a case is returned by Compliance. A vendor API outage prevents address verification for new accounts. A contractor retains access after role…

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