The framework of the Operational Risk Department includes the operational risk policy that was approved by the CBE's BOD, and different procedures and tools, aiming to identify all operational risks resulting from failure/inefficiency of internal procedures, human element, electronic systems, or external events that may threaten and hinder achieving the objectives of the CBE's various departments and operations.
The Department works to assess and measure these risks, according to a predefined operational risk matrix, and accordingly develop appropriate controls to limit/avoid these risks, as well as follow up their implementation to ensure their effectiveness, reduce losses, and maintain the CBE's rights and reputation. The Department provides periodical reports to senior management displaying the risk exposure of all CBE's operations and the approved remedial actions.
The framework of operational risk management includes a set of tools and applications according to the latest international standards, which are used to identify, assess, measure and mitigate operational risks and follow-up controls. These tools are as follows:
- Process Mapping
- Internal Loss Database (ILD)
- Risk-Control Self-Assessment (RCSA)
- Other Risk Approval Process (ORAP)
- Key Risk Indicators (KRIs)
- Awareness sessions on an ongoing basis
All processes related to policies and procedures also lie within the work scope of the Department, which coordinates with all CBE departments in order to prepare and update their policies and procedures according to the latest applications followed in this regard.
Conducting periodical awareness sessions/meetings with the CBE stuff to raise awareness on operational risks, along with highlighting the Department's role and all procedures in place to assess these risks.