Loss due to acts of a type intended to defraud, misappropriate property or circumvent regulations, the law or company policy, excluding diversity, discrimination events, which involves at least one internal party.
Losses due to acts of a type intended to defraud, misappropriate property or circumvent the law, by a third party. These activities include theft, robbery, hacking or phishing attacks.
Employment Practices and Workplace Safety
Losses arising from acts inconsistent with employment, health or safety laws or agreements, from payment of personal injury claims, or from diversity / discrimination.
Clients, Products & Business Practice
Losses arising from unintentional or negligent failure to meet a professional obligation to specific clients (including fiduciary and suitability requirements), or from the nature of design of a product.
Damage to Physical Assets
Losses arising from loss or damage to physical assets from natural disaster or other events. See disaster recovery or business continuity planning.
Business Disruption & Systems Failures
Losses arising from disruption of business or system failures. This includes loss of due to failure of computer hardware, computer software, telecommunications failure or utility outage and disruptions.
Execution, Delivery & Process Management
Losses from failed transaction processing or process management, from relations with trade suppliers and vendors. This includes Transaction Capture, Execution & Maintenance Miscommunication, Data entry, maintenance or loading error Missed deadline or responsibility, Model / system misoperation Accounting error, entity attribution error, Delivery failure, Collateral management failure Reference data maintenance, Monitoring & Reporting Failed mandatory reporting obligation, Inaccurate external report (loss incurred), Customer Intake & Documentation Client permissions / disclaimers missed Legal documents missing / incomplete, Customer / Client Account Management Unapproved access given to accounts, Incorrect client records (loss incurred), Negligent loss or damage of client assets, Trade partners, non-client vendor misperformance and vendor disputes.
Operational Risk Management in your enterprise may be centralized or decentralized based upon your organizational structure. However, one item should not be overlooked when it comes to effectively executing across these categories. Strategy Acceleration is paramount if you are going to survive.
THERE ARE 6 WAYS to ACCELERATE STRATEGY EXECUTION.
Creating strategic foxholes with your executive team. This ensures that your senior team is clear on strategic intent, aligned with what it will take to make any endeavor "executable," and committed to achieve expected results.
Identifying and implementing key levers for strategic performance improvement. This ensures that result measures are tied to the business and behavioral changes needed to produce them and establishes accountability for results.
Rapidly cascading strategic clarity, buy in, rollout plans and commitment from the executive suite to the front line. Getting everyone who is essential to strategic results executing from the same playbook.
Operationalizing a Strategy Realization Office. Putting the execution infrastructure and resources in place to manage acceleration and ongoing execution of your critical business strategies. Defining, designing and staffing the function of Strategy Execution Officer.
Applying a strategy portfolio management approach to maximize return on investment and minimize shareholder risk. Providing the mechanism for your executive team to manage priorities, timing, investment, risk, return, resources, capacity and results from your strategies.
Increasing the nimbleness of your leaders and people at all levels so they are prepared to absorb any strategic initiative needed to ensure your organization's success. Leaders from top to bottom will learn the key steps to building a nimble company - one that is capable of executing major strategic initiatives more effectively and efficiently than any of your competitors.