Episode Synopsis "#4 The role of Operational Risk"

Building on the last episode, in which we focussed on the huge loss at the German payments process Wirecard, today, the focus on OpRisk aka Operational Risk. The risk of loss resulting from inadequate or failed processes, people and systems or from external events. It would not be a stretch to say that in Financial Services this is a discipline that is really not well understood. Yet things going wrong has a huge impact on the banks. Operational Risk is something that in my opinion is poorly understood. In that misunderstanding I’d include both its actual cost and what drives it. To help explain the picture, I am delighted to have as a guest today Martin Liljeblad. Martin is currently based in New York. He moved there from Sweden a couple of years back. In Sweden he worked both inside a bank and before that for a regulator. Martin is here in his own right, so any views he expresses are his own and not those of his current employer or any prior ones. Martin makes some important points during our chat: His first point echoes a comment from my very first Podcast guess, Barry Lewis: you can't manage what you don't measure and you need a level of detail to turn data into actionable information OpRisk capital cost looks at the events of the last 10 years, so reducing your cost requires patience. But, Martin points out, any process improvements will immediately improve the experience for your customers As OpRisk matures as a discipline, Martin is encouraged as he sees operational risk input being pro-actively sought in helping shape new business ideas from the outset and when there are changes to existing processes

Listen "#4 The role of Operational Risk"

More episodes of the podcast The Bankers’ Plumber - Lessons Learned

• #11 - Gautam Gujral / Vertalo
• #10 David Potter - Islamic Finance
• #9 Colin Parry
• #8 - Tim Swanson
• #7 - The Consortium Conundrum Pt 2 - How banks change things
• #6 The Consortium Conundrum Pt 1 - How banks change things
• #5 More Operational Risk
• #4 The role of Operational Risk
• #3 Size Matters
• #2 Mike Certo / Ed Watts - The origins of the title “Lessons Learned”
• #1: Barry Lewis - About Basics and Good Control
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