Operational Risk Manager

Operational Risk Managers (ORMs) are responsible for identifying, assessing, and mitigating operational risks within an organization. They develop and implement risk management frameworks, policies, and procedures to ensure compliance with regulatory requirements and industry best practices. ORMs work closely with business units to understand their operations and identify potential risks. They also collaborate with other risk professionals, such as credit risk analysts and market risk analysts, to develop a comprehensive enterprise-wide risk management program.

Responsibilities

Some of the key responsibilities of an ORM include:

• Developing and implementing risk management frameworks, policies, and procedures
• Identifying, assessing, and mitigating operational risks
• Collaborating with business units to understand their operations and identify potential risks
• Collaborating with other risk professionals to develop a comprehensive enterprise-wide risk management program
• Monitoring and reporting on operational risks
• Providing training and guidance on risk management to employees
• Staying up-to-date on regulatory requirements and industry best practices

Education and Experience

ORMs typically have a bachelor's degree in risk management, finance, accounting, or a related field. They may also have an MBA or other graduate degree. ORMs typically have several years of experience in risk management or a related field.

Certifications

There are a number of certifications available for ORMs. Some of the most popular certifications include:

• The Operational Risk Manager (ORM) certification from the Operational Risk Management Institute (ORMI)
• The Certified Operational Risk Manager (COR) certification from the Institute of Risk Management (IRM)
• The Certified Risk Manager (CRM) certification from the Risk Management Association (RMA)

Career Growth

ORMs can advance their careers by taking on more senior roles within their organizations. They may also move into other areas of risk management, such as credit risk or market risk. ORMs with strong leadership and communication skills may also move into management positions.

Day-to-Day

The day-to-day work of an ORM can vary depending on the size and complexity of their organization. However, some of the common tasks that ORMs perform include:

• Analyzing data to identify and assess operational risks
• Developing and implementing risk management plans
• Monitoring and reporting on operational risks
• Providing training and guidance on risk management to employees
• Collaborating with other risk professionals and business units

Challenges

One of the biggest challenges that ORMs face is the need to balance the need for risk mitigation with the need to maintain business continuity. ORMs must be able to identify and assess risks without creating unnecessary barriers to growth.

Personal Growth

ORMs have the opportunity to develop a wide range of skills, including:

• Risk management
• Data analysis
• Communication
• Leadership
• Project management

Self-Guided Projects

There are a number of self-guided projects that students can complete to better prepare themselves for a career as an ORM. Some of these projects include:

• Developing a risk management plan for a small business
• Conducting a risk assessment for a non-profit organization
• Writing a white paper on a current topic in operational risk management

Online Courses

There are a number of online courses that can help students learn about operational risk management. These courses can provide a solid foundation in the principles of risk management and help students develop the skills they need to be successful ORMs. Some of the topics covered in these courses include:

• Risk identification
• Risk assessment
• Risk mitigation
• Risk monitoring
• Risk reporting

Online courses can be a great way for students to learn about operational risk management at their own pace and on their own schedule. However, it is important to note that online courses alone are not enough to prepare students for a career as an ORM. Students who are serious about a career in operational risk management should also consider pursuing a degree or certification in the field.