Operational risk covers a lot of ground. It includes any risk arising from a company’s processes, people, and systems. It’s essential to understand where—and to what degree—perils lurk. We help clients develop a risk taxonomy, a set of relevant risk types, and use it to assess risks by probability and impact. This evaluation lets companies optimize their risk appetite—setting the right level of risk for every type of operational risk—and develop a risk strategy that aligns with their business strategy.

A key success factor in operational risk and resilience is having clarity on roles and responsibilities across the three lines of defense: managers on the ground, the risk function, and internal and external auditors. We help clients define decision rights and strike the right balance of delegation and control, so operational risk management can be effective without slowing down day-to-day business.

At the heart of an operating model for operational risk are the mechanisms for assessing, mitigating, and monitoring risk. We develop the processes, playbooks, reporting, and testing that help organizations zero in on potential and emerging risks—and take the right action at the right time. We identify where technology, such asrisk analytics andAI, can boost efficiency and effectiveness. And we create controls to ensure that the risk function runs as it should.

People,technology, andculture are key ingredients—and potentially catalysts—in any risk management model. We help leaders set the tone from the top and establish a culture where operational resilience is a key strategic objective. And we unleash the power of data and AI to drive predictive analytics and fuel visual dashboards, so the right information gets before the right people at the right time—enabling faster, better decisions on operational risk.