Today the IOR has published the fifth paper in the Sound Practice Guidance (SPG) series.
Today the Institute of Operational Risk (IOR) has published the fifth in its series of Sound Practice Guidance papers on the topic of Risk Categorisation.
The paper emphasises the importance of risk categorisation despite it being an often overlooked element of a successful operational risk framework.
A workable risk taxonomy – often referred to as risk categorisation – can be regarded as the foundation upon which an effective operational risk management framework is constructed. Without this common frame of reference for risk information there will be no clear basis for monitoring, reporting, or meaningful action.
The guidance paper highlights the benefits of a well-designed and properly implemented categorisation framework; explores different approaches to categorisation, the implementation of the framework and a number of challenges involved, together with solutions drawn from the practical experience of a variety of organisations.
Risk Categorisation addresses the approach to risk categorisation being fundamental to the effective management of operational risk. Read more here
The full SPG series may be found here. Risk Categorisation and the remainder of the series will be available to members only.