Podcast: The future of operational risk scenarios

The latest episode of the ORX Operational Risk Podcast is now available. You can either listen through Apple Podcasts, Spotify or anywhere else you get your podcasts from (search for 'The ORX Operational Risk Podcast' to find us). Or, you can listen to the episode online.

How operational risk scenarios are evolving for the future of risk management

"[Scenario analysis] only really became a mainstream focus for operational risk with the advent of Basel ii, which was around 15-20 years ago. And, if you have a look back at what the text says at that point it looks very different to where we are today"

In this episode, Giuseppe Aloi, ORX Scenarios manager, is joined by Luke Carrivick and Steve Bishop from ORX to discuss how scenario analysis has evolved over the last decade and how it will continue to develop.

This conversation follows a series of discussions we held with operational risk experts, scenario experts and the heads of operational risk on the role of scenarios at their firms.

We wanted to understand both how scenarios are currently being used and how they can evolve to better support operational risk management in financial organisations. From these discussions, we created a white paper – Operational Risk Scenarios: From Risk Measurement to Risk Management and Beyond – which is available for you to download. 

This podcast builds on the white paper, with Giuseppe, Luke and Steve looking at how scenario analysis at financial institutions has moved from an initial focus on modelling and measurement to playing a key role during the pandemic and, finally, exploring how scenarios are evolving to support proactive operational risk management.

"Coming back to the to the conversations that we had with various ORX members and leaders and scenario experts, I think one of the other really recurrent themes that we heard in relation to scenarios and scenario developments was the focus on trying to drive genuinerisk management benefits from running the scenarios. I think that definitely signals a clear evolution of a process."

Listen to the full episode for more

Our podcast is available on Apple Podcasts, Spotify or anywhere else you get your podcasts from (search for 'The ORX Operational Risk Podcast' to find us).

Or, listen to this episode and previous episodes online

A full transcript of the episode will be available soon.