Description of the Business Line or Department
The Basel II Committee defines operational risk as: "The risk of loss resulting from inadequate or failed internal processes, people and systems or from external events."
The SG Kleinwort Hambros First Line Operational Risk team report into the COO function but work with all the departments. It is responsible for promoting a controlled operational risk environment, offering support to departments on practices and processes to mitigate operational risks and ensuring all operational risk management information produced is accurate and meaningful.
The first line Operational Risk department covers the whole of the SG Kleinwort Hambros group (KH) and is based in London. As a relatively small department, although staff will have lead roles in some areas of the department’s responsibilities, staff are expected to be able to cover all of them when necessary.
The Operational Risk department’s main responsibilities are to:
- support the business units and support functions within KH in the identification and management operational risks and operational risk events;
- promote and reinforce a risk management culture across the business;
- challenge the effectiveness of controls and frameworks;
- create, manage and maintain managerial supervision governance, policies and standards;
- coordinate key operational risk management processes such as:
- the collection of risk event data
- major risk events
- the performance of Risk Control Self Assessments (RCSA)
- co-ordinate responses to frauds propose and monitor operational risk key risk indicators;
- investigate and report on, with recommendations, key operational risk issues identified within KH;
- support the follow-up of internal audit recommendations;
- provide operational risk reporting to management;
- deliver training on operational risk management and processes within KH;
Summary of the key purposes of the role
Support the Operational Risk function within the KH in the fulfilment of its responsibilities as listed in the previous section.
The Operational Risk department requires all team members to be flexible within their role and be able to cover for all areas of the department’s responsibility where necessary. Thus, although the role will require the holder to be a lead in some of the department’s responsibilities, the holder is expected to be able to support and cover other members of the Operational Risk team in all the areas of the department’s responsibilities.
Summary of responsibilities
- Review risk event register entries to ensure they are appropriate and that actions to correct and minimise recurrence are appropriate. Feedback and support the business units where this is not the case. Close risk event register entries when completed.
- Investigate and report on key operational risk issues within the business as appropriate.
- Supporting the business to devise and implement controls to mitigate the reoccurrence of risk events, where trends are identified.
- Dealing with major risk events – including attending major risk event meetings, producing meeting summaries and following up actions.
- Maintaining a register of actions arising from major risk events and following up with the business to ensure they are completed.
- Providing suitable operational risk training to staff in KH.
- Co-ordinating and supporting business units in the completion and update of RCSAs.
- Support the business in defining and reporting Key Risk Indicators.
- The employee must know and comply with the regulations, rules and procedures, internal and external applicable in the context of its function and follow the compulsory training.
- Perform all duties in accordance with the principles outlined in the SG Code of Conduct, as well as the policies and procedures relevant to your responsibilities, to ensure that you adhere to a culture that treats clients fairly and focuses on the long-term sustainability of client relationships.