Ever wonder how to dig deep into operational risk events and untangle their impact on your performance? Here are a few strategies to support you:

1. Pinpointing Potential Risks: Identify Operational Risk Events

Initiate the process by identifying potential operational risk events. Recognise the early indicators, similar to spotting signs before a storm hits.

Identifying operational risk events involves staying vigilant, monitoring the business landscape for potential pitfalls. Early recognition is key, akin to a skilled weather forecaster detecting signs of an approaching storm. This initial step sets the stage for a proactive risk management strategy.

2. Delving into the Causes: Analyse Root Causes

Dive deep into the "why" of these events. Uncover the root causes that lie beneath the surface. Analysing root causes is a meticulous process, requiring a thorough examination of the factors contributing to operational risk events. It peels back layers to reveal the core issues, providing the foundation for necessary interventions and risk mitigation.

3. Gauging the Fallout: Evaluate Impacts

Recognise operational risks have lasting effects on your processes. Assess these impacts, whether they affect timelines, resources, or overall performance. Evaluating impacts extends beyond immediate consequences. It involves a comprehensive examination of how operational risk events reverberate through the organisation. This step is crucial for gauging the true extent of the fallout and informing effective strategies for future risk mitigation.

4. Taking Strategic Steps: Implementing Actions

Armed with insights, it's time to take strategic actions. Implement measures and strategies to mitigate these risks effectively. Implementing actions is the proactive phase of risk management. It involves translating insights into tangible strategies, fortifying the organisation against potential risks.

5. Reflecting on Results: Reviewing Outcomes

Reflect on the outcomes of your actions. Did they hit the mark, or is there room for improvement? Reviewing outcomes is the reflective phase of risk management. It involves assessing the effectiveness of implemented strategies and learning from the experience. This step provides insights that inform future decision making and enhance overall risk management capabilities.

6. Sharing Valuable Insights: Communicating Findings

Operational risks impact the entire team. Share your insights and findings, just like passing on lessons learned to ensure everyone is on the same page for the next challenge. Other business units or teams may be facing the same problems as you and by sharing knowledge you can present risks from manifesting.

Additionally, transparent communication ensures that everyone is aligned in their approach, promoting a unified and proactive response to future challenges. Communication is pivotal for effective risk management.

7. Anticipating Future Challenges: Further Considerations

Lastly, cast your gaze beyond the immediate playbook. Anticipate upcoming risks, adapt your strategies, and stay ahead of the curve. Anticipating future challenges is the forward-thinking aspect of risk management. It involves looking beyond immediate concerns, considering emerging trends, and adapting strategies to stay resilient. This step ensures that the organisation is well-positioned to navigate future operational risks successfully.

Conclusion

Whether it's identifying, analysing, evaluating, or communicating, each step is a move toward a more resilient and risk aware operation. It's about understanding the intricacies, strategically navigating challenges, and staying ahead in the ever evolving world of operational risks.

Closing Thoughts

I encourage you to consider where you should be conducting root causes to prevent future risks from arising. Are you sharing all the knowledge learnt in root causes to the other parts of the organisation so they can learn? Does you organisation complete the following steps regarding assess the root causes and impacts of operational risk events?

Now, what would you do differently and what help do you need to get there?