Operational risk management raises profile in Germany

Thirty operational risk professionals from across Germany, representing regulators, banks, insurance brokers and consultants, launched the German chapter of the Institute of Operational Risk.

Operational risks are those that result from inadequate or failed internal processes and systems, human factors and external events, in contrast to deliberately assumed risks such as credit.

The German chapter of IOR will promote the development of the discipline of managing operational risk and provide support to practitioners in one of the world's leading economies and concentrations of financial services.

The chapter will also seek to open a dialogue with regulators and other relevant associations in order to further promote awareness and recognition of the discipline.

Walter Dutschke, operational risk management expert in Germany, and the first head of the chapter: "The impact of operational risk on reputation and shareholder value has long been underestimated. In Germany operational risk is increasingly regarded as a key management function in financial institutions.

"However, there are still areas that need improvement, and operational risk management needs to cope with changing conditions."

He added:"We believe that by creating a platform for IOR members to share and learn, we will highlight the value of operational risk management."

"We will focus on building professional and social networks with activities based on a theme of continuing professional development so that training, education and knowledge transfer are high on the agenda."

Membership will be open to practitioners in all industries where the operational risk management function is regarded as an essential element of their business activities.

IOR chairman Edward Sankey commented: "Setting up the chapter in Germany demonstrates the growing awareness of the distinctive and important discipline of strategic and operational risk management."

"Walter and his colleagues have brought great enthusiasm and commitment to establishing this Chapter. I am sure the IOR events will be of great value to members in Germany as they are in other countries with local chapters."