Operational Risk Issues
What operational risk issues could you be faced with?
In this ever changing business landscape organisations are becoming increasingly concerned with operational risk issues, these risks being those that damage the operational effectiveness of an organisation. Some of the top operational risk issues from organisations from across the world include (Protiviti, 2018):
- Risks arising from our reliance on outsourcing and strategic sourcing arrangements, IT vendor contracts, and other partnerships/joint ventures to achieve operational goals may prevent us from meeting organisational targets or impact our brand image.
- Our organisations succession challenges and ability to attract and retain top talent may limit our ability to achieve operational targets.
- Our organisation may not be sufficiently prepared to manage cyber threats that have the potential to significantly disrupt core operations and/or damage our brand.
- Ensuring privacy/identity management and information security/systems protection may require significant resources.
- Our existing operations may not be able to meet performance expectations related to quality, time to market, cost and innovation as well as our competitors, especially new competitors that are “born digital” and with a low cost base for their operations, or established competitors with superior operations.
- Inability to utilise data analytics and “big data” to achieve market intelligence and increase productivity and efficiency may significantly affect our management of core operations and strategic plans.
- Resistance to change may restrict our organisation from making necessary adjustments to the business model and core operations.
- Our organisations culture may not sufficiently encourage the timely identification and escalation of risk issues that have the potential to significantly affect our core operations and achievement of strategic operations.
- Our organisation may face greater difficulty in obtaining affordable insurance coverage for certain risks that have been insurable in the past.
We can clearly see a varied list of what organisations are concerned about from an operational perspective and this survey was from across different industries across the globe, with evident similarities of concern across the board. If your organisation recognise any of the operational risk issues above then Business Guard may be able to provide assistance to your organisation.