All under control

Jeff Roth and Wally Musegades outline how it is possible to reduce exposure through active control management, and for the op risk function to make a positive contribution to business results

Basel II, the Sarbanes-Oxley Act, and increased regulatory scrutiny are the catalysts for a renewed emphasis on risk assessment and internal control. The regulatory environment has triggered exhaustive efforts to identify, document and assess the key operational, financial and compliance risks, and the primary control activities that mitigate these risks. However, the risk management exercise of