Guiding criteria for operational risk reporting in a corporate environment

Abstract

Risk reporting is most probably one of the most important components of a risk management process. Operational risk reporting, in many organisations, is not developed to such a degree that it will add value to the organisation and is mostly based on regulatory requirements. This means that risk reports mostly aim to comply with regulations rather than add value in terms of providing useful information to ensure effective decision-making. Within this context, this research aims to develop guidelines for operational risk reporting which will be based on a comprehensive literature review of operational risk to determine criteria which can serve as guidelines for effective risk reporting. The criteria will be subject to an empirical analysis by means of an anonymous questionnaire completed by experienced managers in a corporate environment. The data will be analysed in terms of descriptive statistical analysis in order to confirm the applicability of the criteria in terms of operational risk reporting. The information will be used to compile a prioritised list of criteria which could serve as a guideline to corporate organisations during operational risk reporting.