Operational Risk Management (ORM): Definitions and Key Practices
Operational Risk Management (ORM) refers to a structured and systematic approach for identifying, assessing, mitigating, and monitoring risks that arise from an organization’s daily operations. These risks may originate from internal factors—such as failed processes, human errors, or system malfunctions—or external events including natural disasters or cyberattacks. The primary objective of ORM is to safeguard…
Read article Operational Risk Classification by Event Type
Operational risk refers to the risk of loss resulting from inadequate or failed internal processes, people, systems, or external events. To effectively manage and mitigate such risks, organizations—particularly in the financial sector—commonly classify operational risk events by event type. This classification framework, widely adopted and promoted by the Basel Committee on Banking Supervision, helps institutions…
Read article Classification of Operational Risk
Operational risk refers to the potential for loss resulting from inadequate or failed internal processes, people, systems, or from external events. To effectively manage and mitigate these risks, financial institutions and other organizations categorize operational risk into specific types. This classification aids in identifying risk sources, designing control mechanisms, and enhancing overall operational resilience. Key…
Read article Understanding Operational Risk: Definition, Scope, and Management
Introduction Operational risk has emerged as a critical area of concern in modern banking and financial management. Initially viewed as a residual or unquantifiable category, the definition of operational risk has evolved through extensive analysis and regulatory refinement. It is now recognized as a distinct and measurable form of risk with significant implications for business…
Read article Operational Risk Management and Integrated Risk Management: A Comprehensive Overview
Operational Risk Management (ORM) Definition:Operational Risk Management (ORM) is the structured process of identifying, assessing, and mitigating risks that may disrupt an organization’s routine operations. Focus:ORM concentrates specifically on risks originating from internal processes, human errors, system failures, and other operational activities. Goal:The primary objectives of ORM are to protect value creation, uphold stakeholder confidence,…
RBI Issues Draft Guidelines on Digital Banking Channels: Proposes New Compliance Norms and Ban on Third-Party Promotions
The Reserve Bank of India (RBI) has issued the draft “Digital Banking Channels Authorisation Directions, 2025”, introducing a comprehensive regulatory framework aimed at strengthening the governance, security, and transparency of digital banking services. The draft proposes significant restrictions, including a prohibition on the display of third-party products and services on banks’ digital platforms, and mandates…
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