Fundamentals of Operational Risk Management: Understanding and Implementing Effective Tools, Policies and Frameworks

by Simon Ashby

Overview

Threats and disruptions to the operations of any organization can have major consequences. From IT disruptions, cyberattacks and third-party issues to serious fraud, conduct risks and geopolitical challenges, there are numerous issues that can impact the success of an organization.

Understanding the key principles of an effective operational risk management programme allows organizations to protect themselves from this growing number of threats. Fundamentals of Operational Risk Management outlines how to implement an operational risk management framework which is embedded in day-to-day business activities for established risk professionals. Covering how to understand an organization's existing risk appetite and risk culture to the key tools for managing operational risks such as a categorization, risk and control self-assessment and scenario analysis, this book provides a step-by-step guide to improving operational risk management.

This new edition brings new coverage of emerging operational risks related to AI, ESG, extended enterprise and supply chains. It also includes a new chapter that shows an organization how to manage the impact that geopolitical risks can have on their operations. With global real-world examples of major operational risk events across different industries, this book shows the important role that operational risk management can play in an organization's success.

Product Details

ISBN-13:	9781398622913
Publisher:	Kogan Page, Ltd.
Publication date:	12/30/2025
Edition description:	2nd ed.
Pages:	336
Product dimensions:	6.14(w) x 9.21(h) x 0.00(d)

About the Author

Simon Ashby has been an academic, a financial regulator and a senior operational risk manager in several UK financial institutions. He is currently a visiting professor at Vlerick Business School (Belgium), Bayes Business School (UK) and Exeter Business School (UK). He is a Fellow and former Chair of the Institute of Operational Risk. He is based in Plymouth, UK.

The IRM is a world leading professional body for risk management, driving excellence in managing risk to ensure organizations are ready for opportunities and threats of the future.

Table of Contents

** Chapter - 01: Understanding operational risk: key concepts and management objectives; ** Chapter - 02: Embedding operational risk management; ** Chapter - 03: Categorizing operational risks; ** Chapter - 04: Risk culture; ** Chapter - 05: Risk appetite; ** Chapter - 06: Operational risk governance; ** Chapter - 07: Risk and control self-assessments; ** Chapter - 08: Operational loss events; ** Chapter - 09: Operational risk indicators; ** Chapter - 10: Scenario analysis and stress testing; ** Chapter - 11: Organizational resilience; ** Chapter - 12: Geopolitical risk; ** Chapter - 13: Regulating operational risk

Editorial Reviews

"It is becoming more and more clear that operational risk models are of limited use, while taking behavioural elements into account in risk culture, governance etc. is of tremendous importance. This book sets absolutely the right focus - and numerous case studies confirm that Simon is not just a seasoned academic, but very familiar with the important details of practical implementation as well. Really worthwhile reading!"

Professor Kaiser Risk Management Consulting & Goet Prof. Dr. Thomas Kaiser

"This is an excellent book, serving as an effective pragmatic tool for risk practitioners working in all three lines across the world, as well as a good guide for the academics in operational risk."

Dominic Wu

"Simon Ashby presents a very well structured, research-based and informative guide to operational risk management. This excellent book covers every key topic, from embedding risk culture to conducting scenario analysis. A remarkably rewarding source for practitioners."

Elena Pykhova

"Simon Ashby is very well placed through his long association with the Institute of Operational Risk to write what will prove to be the definitive book on operational risk. He challenges us to expand our understanding of operational risk to encompass 'unpredictable outcomes of the efficiency and effectiveness of operations.' Using a series of compelling case studies, he brings the subject alive. It is sobering to see how many of the selected case studies had underlying cultural drivers. I found the section on risk culture particularly practical in its insights to monitoring and taking action. The approach to operational risk event data establishes the benefits of learning from past events and ensuring recurrence is prevented, which surely is the essence of any robust approach to operational risk."

Alex Hindson