Avoiding pitfalls and minimizing losses—that’s where operational risk management starts but not where it should end. We help companies develop an operating model for risk that mitigates the dangers and drives resilience, efficiency, and growth.
It’s a perfect storm for operational risk and resilience. New technologies are raising new concerns. Regulatory landscapes are evolving. And the ability to absorb shocks is becoming a strategic priority. But as cost pressures mount, the key—and the challenge—is finding a framework for operational risk management that avoids a tradeoff between efficiency and effectiveness.
Our take is simple: best-of-breed resilience risk management is a competitive advantage. It not only lets companies avoid disruption but also helps them streamline processes, improve operational resilience, and spark value—no easy feats. Successful resilience risk management requires the right governance, processes, roles, and culture. In short, it calls for an operating model for operational risk that is prepared to manage tomorrow’s uncertainty and enables the organization to innovate quickly.
To help companies, we have developed a unique operating model that combines deep experience in operational risk with expertise across functional and technical areas—everything from organization design to generative AI. We work with organizations on every aspect of operational risk management, from risk taxonomy to end-to-end risk function transformation. It’s a holistic approach built around four steps.
Our operational risk consulting team reshaped the risk organization for a European bank, developing an action plan to boost effectiveness while reducing costs by up to 20%. Key components included a new organization structure with defined responsibilities, governance that optimized interaction between the central risk group and the bank’s subsidiaries, and digital technologies that enhanced and simplified operational risk management.
We helped a fintech startup grow its roster of partners from 14 to 25 and deploy three scorecards to assess customer profiles and risk, in only six months. We developed an end-to-end operational risk system, including structures and governance for its risk management function. BCG’s experts defined guardrails to expedite risk approvals, designed dashboards, and created rules for partnering with other fintechs.
Operational risk management consulting experts debate how effectively organizations are adjusting risk management practices to govern AI. From MIT Sloan Management Review.
Regulation of technology firms is increasing, especially in the AI arena. Tech leaders must build an effective compliance function that supports rather than hinders innovation.
Risk has always outpaced risk management, but the scale, complexity, and interconnectedness of risk today mean that businesses need a new approach.
A BCG study reveals how top-performing companies effectively addressed the risk management challenges of recent crises and what other companies can learn from them.
Our risk management consulting leaders help clients manage operational risk and bolster operational resilience. Here are some of our experts.
