RSK4801
JANUARY / FEBRUARY 2025
UNIQUE NO.
DUE DATE: MARCH 2025
, RSK4801
January February 2024
Unique Number:
Due Date: 2025
Operational Risk Management
Question 1: Benefits of a Sound Operational Risk Report
1. Enhanced Decision-Making A sound operational risk report provides reliable
data, which supports informed decision-making by the Board and management. It
enables the identification of potential risks and the prioritization of mitigation
strategies.
2. Regulatory Compliance By addressing compliance requirements, the report
ensures that the Bank adheres to regulatory standards. This reduces the
likelihood of fines and penalties from breaches of regulatory frameworks.
3. Risk Transparency Operational risk reporting increases transparency by
documenting identified risks, their severity, and mitigation measures.
Stakeholders can better understand the Bank’s risk profile and management
efforts.
4. Improved Stakeholder Confidence A comprehensive risk report assures
stakeholders that the Bank is proactively managing its risks. This builds trust and
enhances the Bank’s reputation.
5. Support for Strategic Objectives Effective operational risk reporting aligns risk
management practices with the Bank’s strategic objectives, ensuring that risk-
taking is measured and supports growth.
6. Fostering a Risk Management Culture Regular reporting embeds a strong risk
management culture by promoting awareness and adherence to risk principles,
standards, and ethical practices among employees.
JANUARY / FEBRUARY 2025
UNIQUE NO.
DUE DATE: MARCH 2025
, RSK4801
January February 2024
Unique Number:
Due Date: 2025
Operational Risk Management
Question 1: Benefits of a Sound Operational Risk Report
1. Enhanced Decision-Making A sound operational risk report provides reliable
data, which supports informed decision-making by the Board and management. It
enables the identification of potential risks and the prioritization of mitigation
strategies.
2. Regulatory Compliance By addressing compliance requirements, the report
ensures that the Bank adheres to regulatory standards. This reduces the
likelihood of fines and penalties from breaches of regulatory frameworks.
3. Risk Transparency Operational risk reporting increases transparency by
documenting identified risks, their severity, and mitigation measures.
Stakeholders can better understand the Bank’s risk profile and management
efforts.
4. Improved Stakeholder Confidence A comprehensive risk report assures
stakeholders that the Bank is proactively managing its risks. This builds trust and
enhances the Bank’s reputation.
5. Support for Strategic Objectives Effective operational risk reporting aligns risk
management practices with the Bank’s strategic objectives, ensuring that risk-
taking is measured and supports growth.
6. Fostering a Risk Management Culture Regular reporting embeds a strong risk
management culture by promoting awareness and adherence to risk principles,
standards, and ethical practices among employees.
