Studies how to deal with disruptive events and losses from failures of processes, people or systems, and promotes the analysis of strategic and emerging risks.
Objective and functions
Analyze documents from internationally recognized organizations (standards, norms, guides and manuals) that serve as a reference for institutions to deal with disruptive events, losses from failures of processes, people or systems, and losses from inadequate decisions in defining or executing their strategy, and promote the analysis of emerging risks, such as environmental and reputational ones.
- 01Prepare a periodic report of relevant operational risk indicators.
- 02Promote the publication of official statistics on the operational risk events that institutions report to supervisors.
- 03Analyze disruptive events of interest to the Club (pandemics, climate change, natural disasters, forest fires, floods, pollution) and build a documentary repository.
- 04Promote new regulations or changes to existing ones to strengthen the control framework for operational and emerging risks.
- 05Promote best practices among members to mitigate these risks.
- 06Hold discussions with figures from the public and private sectors.
What operational, strategic and emerging risks are
Operational risk
Risk of loss resulting from inadequate or failed internal processes, people or systems, or from external events. It includes legal risk and excludes strategic and reputational risk.
SourceBasel Framework, OPE10: definition of operational risk (opens in a new tab)
Strategic risk
Risk that decisions about the mission, objectives and design of the strategy, or its execution, prevent the desired results from being achieved. That is why it is managed together with strategy and performance, and not as an isolated risk.
Emerging risks
New or changing risks, with high uncertainty and hard to quantify, such as climate, technology or reputational risks. They are identified in advance through environmental scanning and scenarios. The World Economic Forum’s Global Risks Report is an annual reference.
How it is measured and quantified
It combines data from actual events with expert assessments, because there is little historical data on extreme events.
Loss event database
Systematic record of operational events with their amount, cause, line of business and recoveries. It feeds both internal management and the capital calculation.
Risk and control self-assessment (RCSA)
Each area rates its inherent risks and the effectiveness of its controls, and the residual risk is obtained.
Key risk indicators (KRI)
Early signals with thresholds and a traffic-light scheme: turnover of critical staff, errors per transaction volume, system outages, overdue open incidents.
Scenario analysis
Estimates the impact of severe but plausible events, such as the failure of a critical supplier or an internal fraud, which barely appear in the data.
Regulatory capital
Capital = business indicator component × internal loss multiplierThe Basel standardized approach combines the size of the business, measured with the business indicator, with the institution’s own loss history.
Strategic and emerging risks
They are assessed with scenarios, leading indicators and periodic reviews of the environment, since they do not lend themselves to a single formula.
How it is managed
Coordination
Those who lead the committee. The coordination and co-coordination roles rotate once a year.
Coordination
Nancy Salgado
PwC
Co-coordination
To be appointed
This position is assigned by annual rotation.
Regulations and recommended readings
Standards and documents that the committee uses as the basis of its work.
- Law 183-02, Monetary and Financial Law
- Current regulations from the superintendencies and local bodies
- Basel Framework, OPE10: definition of operational risk (opens in a new tab)
- Basel Committee (BCBS), Principles for the Sound Management of Operational Risk, 2011 (opens in a new tab)
- Basel Committee (BCBS), Principles for Operational Resilience, 2021 (opens in a new tab)
- ISO 22301:2019, Business continuity management systems (opens in a new tab)
- ISO 9001, Quality management
- ISO 14001, Environmental management
- World Economic Forum, Global Risks Report (opens in a new tab)
Sign up for this committee
Members who wish to take part notify the Club’s Executive Committee, and this form is the channel. Regular members and representatives of sponsor members may take part. Not a member yet? Find out how to become one.
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