Operational Risk Horizon 2021

  • 8 April 2021
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Emerging operational risks in focus

The Operational Risk Horizon 2021 report from our annual global survey of financial institutions is now available for our members to download for free, or for non-members of ORX to purchase.

This year, we changed our approach to monitoring the operational risk landscape. Having previously gathered views of material risks alongside emerging risks, the 2021 Operational Risk Horizon study now focuses solely on the emerging risk landscape.

The 2021 report has been developed using a two-part survey, with part one resulting in a common definition of emerging operational risks and part two gathering the underlying emerging risk data. These surveys, along with extensive input from participants at two roundtables, have informed the findings of this study and have provided consensus on an industry direction of travel for the identification and management of emerging risks.

Operational Risk Horizon

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About the 2021 Operational Risk Horizon

Find out which emerging risks are on financial institutions' agendas

More than 45 financial services institutions were involved in this year's study, sharing their views on what constitutes an emerging operational risk and which emerging risks they were most concerned about.

The results have been drawn together into a comprehensive report which covers our headline findings and explores the relationships between different emerging risk categories and factors, as well as specific themes such as digitalisation and how these impact institutions’ risk profiles.

The report also examines five key emerging risk categories in more detail:

  1. Emerging technologies
  2. Advanced cybercrime
  3. Climate risk
  4. Geopolitics and macroecomomics
  5. People risk

In addition, the report looks at how to identify emerging operational risks, how financial firms are reporting on them and explores the key risk themes identified in the study.

Full report available now

This report was conducted as part of our new range of monitoring the risk landscape studies, which cover both emerging and material risks. If you're not a member of ORX, you can buy a copy of the Operational Risk Horizon 2021 report for just £750.

Alternatively, you can choose to pay £1,750 for access to all three studies from our 2021 Monitoring the Risk Landscape package (this includes the Operational Risk Horizon 2021 report and the two Top Risk Review studies, published in June and November) saving your firm £500 across the year.

Buy the Operational Risk Horizon 2021 or the Monitoring the Risk Landscape 2021 package

Considering the whole risk landscape

“This year’s ORX Horizon report has highlighted that the way in which we view emerging risks is changing.  Now more than ever we are understanding them via a set of interconnected emerging risk factors, which can be continuously monitored to account for the rapidly changing environment. In comparison to a narrow focus on specific risks, this approach provides a more robust and flexible way to anticipate what the most material future challenges will be.”
Dr Luke Carrivick, Director of Research and Information, ORX

Following discussions with participants, it became clear that viewing the emerging risk horizon as a set of standalone emerging risks may limit the visibility of the wider risk landscape.

With risks becoming increasingly interconnected, viewing the landscape as a whole is essential for understanding how different risk categories may impact each other, how the individual factors are linked and how this affects current and future material risk exposures.

Therefore, in this report, we now view the emerging risk landscape as a set of interconnected risk factors that cut across emerging risk categories. These categories can often be summarised by emerging risk themes. Tracking how such themes, categories and the underlying factors evolve over time may help inform analysis of how material risk profiles and the exposures of individual risks are changing.

Get more insight and analysis in the full report

The Operational Risk Horizon 2021 report offers an overview of the industry’s top emerging risk categories and the interconnected risk factors that drive them. It explores a number of categories in further detail to highlight key emerging industry considerations. The report also examines how emerging operational risks are identified and managed and summarises the direction of travel in the operational risk industry.

Find out more and buy the report

Get the 2021 Operational Risk Horizon Study

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