Sample risk assessment report

What does this approach lead to when put into practice? Assume we have examined
Business Unit A and have determined that the sources of operational risk are
related to:
Ω outsourcing
Ω privacy
Ω compliance
Ω fraud
Ω downsizing and
Ω the political environment.
The sample report, as illustrated in Table 12.6, shows that the business has an
overall ‘low’ likelihood of operational loss within the next 12 months. Observe that
the assessment has led to an overall estimate of the severity as ranging from $150
to $300 million. One typically could display for each business unit a graph showing
the relationship between severity and likelihood across each operational risk type
(see Appendix 4).
The summary report typically contains details of the factors considered in making
a likelihood assessment for each operational risk exposure (broken down by people,
process, technology and external dependencies) given an operational failure.