The Categories of Direct Indicator of Risk:Supervise and Review, the Sixth Step of Operation Risk Management

H. L. Wang, H. E. Tsuei and F. E. Wu

ABSTRACT

  The sixth step of Operation Risk Management (ORM), Supervise and Review, involves the determination of the effectiveness of risk controls throughout the operation. This step involves three aspects. The first is monitoring the effectiveness of risk controls. The second is determining the need for further assessment of either all or a portion of the operation due to an unanticipated change as an example. The last is the need to capture lessons-learned, both positive and negative, so that they may be a part of future activities of the same or similar type.

KEYWORDS: Operational Risk Management; Supervise and Review; Direct Indicator of Risk

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