Best Practices for Managing Operational Risk in 2025

This document is a guide that outlines best practices for managing operational risk in 2025. It begins by discussing the operational risk landscape, highlighting a significant incident involving Barclays Bank that underscores the need for robust IT infrastructure and contingency planning. The guide emphasizes the importance of clear communication strategies to maintain customer trust during disruptions. It details various operational risks, including IT disruption, data compromise, and third-party risk, among others. The document also examines global regulatory approaches to operational resilience, including frameworks from Europe, the UK, Australia, and Singapore, which require organizations to proactively manage risks and develop recovery capabilities. Additionally, it notes that U.S. regulators are expected to enhance resilience requirements, aligning with international standards. The guide stresses the role of senior management in overseeing risk management frameworks and provides best practices for governance and accountability, including defining responsibilities and implementing real-time dashboards for informed decision-making.