RMA to address operational risks in IT

Source: Risk Management Association

The Risk Management Association (RMA) is inviting operational risk management professionals from institutions of all sizes to apply for membership in one of two working groups that are being formed to study the best ways to manage operational risks inherent in technology.

In a separate initiative, RMA is also inviting applications for an intensive two-day development forum in New York on November 14-15, 2005, that will address operational risk topics in a round table format with approximately 35 participants from banking, insurance, brokerage and regulatory agencies broken into two working tracks.

In the first initiative, two concurrent working groups, each composed of six to eight industry professionals, will, over a period of six months, address one of two specific topics. The first group, representing large institutions, would address defining operational risks of technology. The second group, representing medium size and small institutions, would address defining and understanding inherent versus residual risk.

Members of both working groups will:

  • Participate in periodic virtual meetings,
  • Attend one or more face to face meetings (at the group's discretion)
  • Perform independent research.

The second initiative, a two-day development forum, will address six similar topics in a roundtable format with about 35 participants from banking, insurance, brokerage, and regulatory agencies broken into two working tracks. The topics are as follows:

Track 1 - Large bank focus

  • Techniques in improving the technology risk assessment component of operational risk assessments.
  • Finding synergy between (and leveraging) Sarbanes-Oxley analytics and operational risk assessments for technology.
  • Methods in alternative operational risk driven management incentives.

Track 2 - Small to medium size bank focus

  • Techniques in assessing and management reporting of technology risks
  • Brainstorming session on a limited list of tangible yet pragmatic key risk indicators for technology risks
  • Considering operational risks when developing strategic technology plans for the bank

The objective these initiatives is to further IT risk practitioners' understanding of the models, strategies, standards, tools, and approaches to dealing with technology risks within the operational risk discipline. Findings will be published by RMA and all participants will be acknowledged.

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