How to Analyze Effective Operational Risk-Operational Risk Analysis

 How to Analyze effective operational risk for your business?

Operational risk is a risk of loss, resulting in ineffective or failed internal processes, people, systems ، Or the result of external events that can disrupt the flow of business operations. It can affect any type of operation from aviation to manufacturing, and safety, performance, performance of operation, project, or facility ، Or can get serious results of the goals.

 Operational Risk Analysis ( ORA ) is a process or tool that helps identify and assess the potential risks and risks to your business work ، And then develops a mitigation strategy to deal with these risks. This can help you improve your product quality, customer satisfaction, regulatory compliance, credibility and financial results .

 But how do you run an efficient ORA for your business? 

Here are some steps to guide you:

 1. Describe the scope and objectives of your ORA

Before starting your ORA, you need to specify the scope and objectives of your analysis. What are the limits of your operation, project, or facility? What are the goals and expectations of your stakeholders? What are the key performance indicators (KPIs) that measure your success?

What are the risks that can prevent you from achieving your goals?

You also need to determine the level and frequency of your ORA. Do you need a high level or detailed analysis? Do you need to run it during execution, or when you close your operation, at the beginning? Do you need to update regularly or only when there are significant changes in your operation?

 2. Identify and assess potential hazards

The next step is to identify and assess the potential risks that can affect your operation. You can use a variety of methods and means to gather information about hazards, such as brainstorms, interviews, surveys, checklists ، Historical data, industry quality, best practices, etc.

You need to consider all kinds of hazards that can arise from people, processes, systems or external events . For example:

People:

employee errors, mismanagement, fraud, business, training differences, etc.

Process:

Disqualified workflow, inadequate control, document issues, non-compliance, etc.

System: hardware failure, software bugs, cybertex, data breaches, etc.

External events:

natural disasters, epidemics, political unrest, terrorism, etc.

You also need to review the possibilities and effects of each risk on your operation. You can use qualitative or quantitative methods to measure these factors. For example:

 Qualitative:

Use certain scales to classify low-sized heights or rare unusually potentially every risk potential and effects.

Quantity:

Use data values such as probability and financial losses to assess the possibility and effects of each risk.

3. Before and classify risks

After identifying and evaluating potential hazards, you need to prioritize and classify them as important. You can use various tools and techniques to do so. For example:

 Risk Matrix:

 A table that plots the possibilities and effects of each risk on the grid. Risks are most important in the upper right corner that needs immediate attention.

Risk Map:

 A graphical representation that shows the distribution and correlation of hazards in different dimensions such as categories,