Operational Risk Profiling

Abstract

Those in governance roles must understand the operational, context-dependent risk profile of their organisation and its workgroups. They must apply due diligence and ensure that resources and processes remain purpose-driven, focused on what matters, socially defensible and aligned to work as done. Risk profiles must be set against risk appetite, and where there is a mismatch, the risk profile must be modified or reduced. This paper outlines an operationally focused and context-sensitive approach to risk profiling, and how construct validity was developed through iterative field-testing, as well as evaluation of early-stage descriptive and predictive utility.