It would be quite ideal if we had an operational risk management handbook because
everyday in our business lives, we are confronted by different kinds of risks. Every time
we make business, or even personal, decisions, we are taking the chances of risks. And
the likelihood of an undesirable conclusion will vary with the risk that you have taken.
Having an operational risk management handbook should be easy enough to create no
matter what your business is. All you need are some basic principles and concepts of risk
management and you can have a handbook on how to properly go about risk
management. A business knows how to direct the structure of its business, its culture,
and the goals that they have set. Anything, whether it is a person, an event, or an
instrument, that has the potential to hinder this is considered a risk.
That is why creating an operational risk management handbook containing the essentials
of risk management is necessary.
But what should be included in the handbook? The following should be seriously taken
into consideration in the creation of your own operational risk management handbook:
1. Carefully categorize the risks you want to manage and identify who should be
involved in the review of it.
2. Set the limitations for your operational risk management handbook.
3. Identify, analyse, and prioritize the risks. They should be evaluated on their impact
4. Plan for possible action on how to avoid, minimize or eradicate the risk. Also make
plans for the recovery process in your operational risk management handbook.
5. Finally, periodically track and monitor how effective your risk management was.
These basic process, if followed and expanded, could help you in creating your own
operational risk management handbook and maybe save your precious business.