Linkage between op risk measurement and management key, says Lawrence

The key question that operational risk managers must face is how they directly link op risk measurement to the process of op risk management, said Mark Lawrence, chief risk officer at ANZ Bank in Australia, today at the annual Operational Risk conference in London.

Lawrence, who delivered the keynote address, repeatedly underscored the differences between traditional risk management disciplines such as credit and market risk, and the challenges of operational risk. “The difference with operational risk is this rather awkward and troubling dependence upon what we describe commonly as internal controls—people,” he said. “People are somehow at the heart of this operational risk process and you only have to look at the Allied Irish experience a little