The Operational Risk Working Party aims to assist actuaries and others in the modelling and management of operational risk. One of the key challenges in modelling operational risk is the modelling of dependencies between operational risks, and between operational and non-operational risks such as market, credit and insurance risk.
Outputs:
- Pension scheme cyber risk, joint paper with the Cyber Risk Investigation Working Party, 17 November 2020 covering pension schemes exposure to this key operational risk
- Worth the operational risk, Actuary article, 2 September 2020, by Nicole Pang of the ORWP covering emerging trends in operational risk modelling
- Joining the dots between operational and non-operational risk, Actuary article, 8 July 2020 on operational risk dependencies following up the Sessional paper below
- Operational Risk Dependencies - paper presented at Sessional event, 20 January 2020, Edinburgh
- Sessional event, 6 March 2017, Edinburgh (repeat of London March 2016)
- Good practice guide to setting inputs for operational risk models - Paper presented at Sessional event, March 2016 which generated headlines in City AM and the Actuarial Post
Other Institute and Faculty of Actuaries (IFoA) papers and resources
- IFoA Cyber Risk Investigation Working Party have produced a number of papers on cyber risk both from the point of view of general insurers’ exposure and also wider operational risk exposure to this risk
- Operational Risk Modelling, presentation of the results of a KPMG Market Survey on operational risk modelling practice to the November 2018 Life Conference
- A review of the use of complex systems applied to risk appetite and emerging risks in ERM practice, by N. Allan, N. Cantle, P. Godfrey and Y. Yin – 2011 paper which covers Bayesian Networks and other techniques which may be used for operational risk modelling and analysis
- Quantifying Operational Risk in Life Insurance Companies, 2006 paper by the Life Operational Risk Working Party (which pre-dated the ORWP)
- Quantifying Operational Risk in General Insurance Companies, 2004 paper by a GIRO Working Party
Other operational risk resources
The following may be of interest to those involved in Operational Risk modelling and management:
- ORIC International – provider of external loss data for insurers and asset managers as well as thought leadership on Operational Risk issues
- Annual Capital Benchmarking Survey Summary Report, January 2020
- Annual Capital Benchmarking Survey Summary Report, January 2020
- ORX – provider of external loss data for banks and other financial services firms, who also provide thought leadership as well as summary reports on recent loss data
- Basel Committee on Banking Supervision (BCBS) – Operational Risk links including their principles for the management of Operational Risk and the new Standardised Measurement Approach (SMA) for setting Operational Risk regulatory capital
- Note that BCBS have also issued papers on operational resilience including
- Principles for Operational Resilience, March 2021
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Operational resilience: Impact tolerances for important business services – joint paper issued March 2021 by the Prudential Regulation Authority (PRA), the Financial Conduct Authority (FCA), and the Bank of England following their December 2019 shared policy summary and consultation papers
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Note that the Institute and Faculty of Actuaries is not responsible for the content of third party websites.
| Chair: | Patrick Kelliher |
|---|---|
| Membership: | 9 |
| Established: | 2014 |
Related documents
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Guidance for Member-Led Research Working Parties
9 November 2017
Contact Details
If you have ideas for cross practice research, or want more information about cross practice working parties, please refer to our Guidance for Research Working Parties or contact the Communities Team.
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Events calendar
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ARC Webinar Series 2021: Modelling cancer risk: regional and socioeconomic disparities
30 September 2021
Cancer incidence and mortality vary by region and socioeconomic status. Modelling the structure development and trends of cancer risk is important for insurance purposes and can impact pricing and reserving in related health insurance fields such as critical illness insurance and care provision. -
Sustainability Series: What will COP26 mean for investment?
6 October 2021
A panel discussion with investment representatives discussing the impact of investment on climate change and vice versa.This event is part of The Road to Glasgow: IFoA’s Sustainability Thought Leadership Series which will provide a platform for prominent contributors so that our members and others can understand the perspectives of a wide range of parties interested in the climate debate.
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Climate change is one of the greatest risks facing our world today. Addressing it will require multi-faceted solutions. Through this panel session, we will explore the different levers that can be used to meet net-zero targets including climate science and data, government engagement, and mobilising green finance.
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Sustainability Series: Climate Justice and Future Generations
12 October 2021How governments and societies collectively respond to the climate crisis is increasingly being analysed through the lens of intergenerational fairness. Our expert panel will assess and explore the extent to which inter-generous fairness is being considered in climate policies, the lessons from those countries who are leading the way on fairness and justice in climate interventions, and more. -
The Growth Mindset for Actuaries
13 October 2021 - 8 December 2021This practical course is aimed at actuaries at any stage of their career who want to develop their own growth mindset and apply it to their work setting and personal or professional lifelong learning. The content of the course builds on the lecture given by Dr Helen Wright on Growth Mindset as part of the President’s 2021 Lecture series, and will be delivered over a period of 2 months, from mid-October to early December.
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Sustainability Series: Opportunities for Insurers
14 October 2021 -
The climate crisis and the degradation of our planet will affect societies everywhere. How we address these threats will require solutions that transcend borders. As a global profession, the actuarial community is well-placed to consider and propose effective risk management solutions to help manage the climate crisis.
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What next for Mental Health in Insurance?
1 December 2021
Content will be aimed at all actuaries looking to understand the issues surrounding mental health in insurance and in particular those looking to ensure products and processes widen access for, and are most useful to, those experiencing periods of poor mental health.
Cancer incidence and mortality vary by region and socioeconomic status. Modelling the structure development and trends of cancer risk is important for insurance purposes and can impact pricing and reserving in related health insurance fields such as critical illness insurance and care provision.
A panel discussion with investment representatives discussing the impact of investment on climate change and vice versa.
Content will be aimed at all actuaries looking to understand the issues surrounding mental health in insurance and in particular those looking to ensure products and processes widen access for, and are most useful to, those experiencing periods of poor mental health.