Prologue: The Job Interview
Prologue: The Job Interview
Introduction: The Management of Risk Management
Prologue: The Job Interview
A Day in the Life
The Operational Risk Function
Risk Management for Beginners: The Operational Risk Policy
Risk Identification
Risk Assessment and Capital Allocation
Scenario Analysis
AMA: An Advanced Approach to Risk Measurement
Reporting
The New Product Approval Process
The Management of Extreme Risks
Financial and Other Disasters
Epilogue: Operational Risk Management in the Year 2020
Interviewer: You’re in the main control room and you realise that, for some reason, two high-speed passenger trains are heading towards each other on the same track. What do you do?
Candidate: The computerised safety system should automatically divert one of the trains, but if this doesn’t happen within the standard response time I would override the system and manually divert one of the trains onto another track.
Interviewer: There seems to be a problem with the computer: the automatic safety system doesn’t kick in and, when you try to intervene manually, the system doesn’t allow you in. In other words, you can’t divert any of the trains from the control room.
Candidate: Then I call both drivers and alert them to the danger so that they can stop the trains until the problem’s solved.
Interviewer: Unfortunately, an electrical storm’s going on in the area disrupting communications entirely. Neither radio nor GSM phones are of any use.
Candidate: In this case, I get into my car and rush to the railway line, where I manually operate the switch in order to divert one of the trains and avoid the collision.
Interviewer: Good try. But the switch is so rusty it doesn’t
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net