Operational risk jobs are available in sectors such as banking, insurance and information technology (IT) and for working with professions such as lawyers, accountants and programmers. Operational risk is loosely defined as the risk incurred from human error, system failure and procedural failure. The job opportunities in this sector can be divided into operational risk prevention or the analysis of a company’s risk. Operational risk has become more important over the years, and companies have dedicated more resources to it, including hiring professionals and acquiring software to protect them from this risk.
The most common definition of operational risk is defined by the Basel ii Compliance Professionals Association as “the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.” Losses might be intentional, from fraud, vandalism, information theft or worker's compensation lawsuits. Losses might be accidental, such as loss of business because of system failures, accounting errors or product defects. Operational risk jobs are developing as quickly as operational risk is being defined.
Operational risk careers are orientated toward either prevention or treatment. The former includes operation risk analysts, operation risk examiners and operation risk managers. These operational risk jobs generally require at least a bachelor’s degree as well as an understanding of the industry’s regulatory laws and guidelines. Successful candidates are strong critical thinkers who can work independently and influence others. They are expected to assess the impact of operational risk on the company’s financial objectives and to develop solutions to the complex problem that operational risk poses.
The latter operation risk jobs ensure that the operational risk reduction plans of action are followed, that breaches are detected and that the financial impact of these losses is limited. Compliance and control officers monitor the adequacy of current risk management plans and their compliance with ever-changing regulations. Auditors regularly verify that reported information is in fact true, reducing operation risk by detecting systematic errors and fraud. Operational risk control software has become a popular choice for businesses because of its lower costs and error rate, and many IT operation risk careers are developing as this field grows. Above all, companies are interested in candidates with a strong sense of ethics who have some previous experience managing risk.
Additional operational risk jobs center on legal risk, which is the risk incurred when laws and regulations change, negatively affecting a company’s position. Recent events, such as the court reversal that forced the Equitable Life Insurance Society of the United Kingdom to close its doors in 2000, highlight the dangers of legal risk. Large companies, from banks to medical establishments, are looking for risk management counselors, lawyers whose expertise is international law and Securities and Exchange Commission regulation, to help devise risk management plans.