July 6, 2020

Operational risk is present in every department of Sharekhan and all Sherus are exposed to it. For the last couple of years, managing operational risk has been easy for us, thanks to our colleagues in the Operational Permanent Control (OPC) department (for the uninitiated, we didn’t have a dedicated department to handle the risk before that). Besides setting up an operational risk management framework as well as assessing, monitoring and mitigating or controlling the operational risks that threaten our business, they have been working with us to create awareness about operational risks in the organisation.

Just in case your understanding of operational risk and everything related is slightly hazy at the moment, we have help. Starting from today, over the next 12 weeks through an e-mail series called Operational Risk Revisited we will refresh your knowledge of the subject one mailer a week. Today, we will tell you why historical risk events are real operational risk events.

In the world of operational risk management, a historical incident has 4 characteristics:

• It is a real event that has actually happened
• It has an identifiable time and location
• It is the result of inadequacy or failure of internal processes or external events
• It has led, may lead or could have led to a loss, gain or opportunity cost

Help Sharekhan improve its risk control system by reporting all operational risk incidents, past and present, of which you may have knowledge to the OPC department at opc@sharekhan.com.