An operational risk management framework for financial services industry

Financial corporations are considered to be adept at measuring and managing their operational risks. The rapid adoption of information systems in every part of the finance industry has forced the actors to measure and manage their information-systems risks as well. However, identifying the relationships among the information systems and the business processes and how those relations affect the operational risks of those business processes has proven to be quite difficult resulting in a multitude of different frameworks that measure IS related risks separately from the operational risks of business processes. Those approaches obviously yield an incomplete picture as the integrity, security or the availability of a financial transaction can’t be approximated without considering the enormous IS infrastructure used to create and store it. Our research aims to create a framework that treats IS related risks as variables in the overall operational risk function for a holistic risk measurement by using enterprise architecture perspective and improving on existing operational risk management and IS risk management frameworks.