Episode Details

This podcast episode from The Compliance Officers Playbook explains operational risk, its significance for compliance officers, and strategies for effective management. Operational risk, encompassing failures in internal processes, systems, or personnel, as well as external events, is explored through key categories: people, process, system, and external risks. The episode highlights how poorly managed operational risk leads to regulatory non-compliance, reputational harm, and increased costs. Practical steps for mitigation, including risk assessment, improved internal controls, technology adoption, employee training, and robust contingency planning, are discussed using real-world examples such as the Target data breach and the Wells Fargo scandal. The podcast ultimately emphasises the crucial role of proactive risk management in ensuring an organisation's long-term sustainability and stakeholder trust.