Operational risk jobs are available in banking, insurance, and IT, and can be prevention or treatment oriented. Losses can be intentional or incidental, and companies are devoting more resources to operational risk management. Candidates need a strong sense of ethics and risk management experience. Legal risk is also a concern, and companies seek risk management consultants and lawyers with international law experience.
Operational risk jobs are available in sectors such as banking, insurance and information technology (IT) and for working with professions such as lawyers, accountants and programmers. Operational risk is loosely defined as the risk incurred by human error, system failure and procedural failure. Job opportunities in this sector can be divided into operational risk prevention or risk analysis of a company. Operational risk has become more important over the years, and companies have devoted more resources to it, including hiring professionals and purchasing software to protect them from this risk.
The most common definition of operational risk is defined by the Basel II Compliance Professionals Association as “the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events”. Losses can be intentional, from fraud, vandalism, theft of information or worker’s compensation lawsuits. Losses can be incidental, such as lost business due to system failures, accounting errors or product defects. Operational risk jobs are developing as quickly as operational risk is being defined.
Operational risk careers are prevention or treatment oriented. The first includes operational risk analysts, operational risk examiners and operational risk managers. These operational risk jobs usually require at least a bachelor’s degree, as well as an understanding of laws and industry regulatory guidelines. Successful candidates are strong critical thinkers who can work independently and influence others. They must assess the impact of operational risk on the company’s financial objectives and develop solutions to the complex problem that operational risk poses.
The latest operational risk work ensures that operational risk reduction action plans are followed, that violations are detected and that the financial impact of these losses is limited. Compliance and control officers monitor the adequacy of current risk management plans and their compliance with changing regulations. The auditors regularly verify that the reported information is really true, reducing the operational risk by detecting errors and systematic fraud. Operational risk control software has become a popular choice for companies because of its lower costs and error rate, and many IT operations risk careers are developing as this field grows. Above all, companies are interested in candidates with a strong sense of ethics and some previous risk management experience.
Additional operational risk work focuses on legal risk, which is the risk incurred when laws and regulations change, adversely affecting the company’s position. Recent events, such as the court reversal that forced the UK’s Equitable Life Insurance Society to close its doors in 2000, highlight the dangers of legal risk. Large companies, from banks to medical establishments, look to risk management consultants, lawyers with experience in international law and Securities and Exchange Commission regulations, to help develop risk management plans.
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