The Critical Intersection of Operational Risk Management and Cybersecurity

As a specialty firm that deals directly with investment managers, Adeptyx consultants actively help their clients manage significant risk. This risk is often organizational in scale and extends across financial, technology, operational and many more facets of the business. A common and complex problem faced by clients within this risk sphere is the critical intersection of Operational Risk Management (ORM) and Cybersecurity. Clients are often unaware of the risks that cyber breaches have on them operationally and the longer-term effects, outside of reputational and financial losses. Those that do often struggle with finding a logical starting point to managing cyber and ORM risk.

Adeptyx Consulting’s latest whitepaper delves into how Operational Risk Management integrates with cybersecurity to protect investment management firms. Highlighting cases like Barings Bank and Silicon Valley Bank failures, the whitepaper underscores that failures in people, processes, and technology can lead to significant operational risks, making ORM essential.

Key Aspects of ORM

Originally defined by the Basel Accords, ORM manages risks stemming from internal errors, system failures, and external threats. Through developing a clear ‘risk lexicon’, organizations can ensure a unified and proactive approach to identifying and managing risks.

The Role of Cybersecurity in ORM

Cybersecurity is crucial within ORM, particularly as firms face threats like ransomware, phishing, insider risks, and third-party vulnerabilities. The whitepaper stresses the importance of integrated cybersecurity strategies that align with ORM processes to enhance resilience.

Building a Robust ORM and Cybersecurity Framework

Effective ORM involves identifying, assessing, mitigating, and monitoring risks continuously. The presence of a Chief Information Security Officer (CISO) is vital for managing cybersecurity initiatives and ensuring a balance between security and business functionality.

Strengthen Your Firm’s Defenses

Adeptyx Consulting offers expert guidance to integrate ORM and cybersecurity. Contact Lars Ranger, Head of Business Development, to explore how we can enhance your risk management strategy.