Best Practices for Managing Operational Risk in 2025

This document is a guide that outlines best practices for managing operational risk in the year 2025. It begins with an introduction that highlights a significant incident involving Barclays Bank, which faced a major IT outage affecting its digital services. The incident serves as a reminder of the consequences of operational disruptions and emphasizes the need for robust IT infrastructure and contingency planning. The document details the operational risk landscape, noting that organizations experience numerous outages annually, leading to substantial financial losses and erosion of investor confidence. It presents various operational risks, including IT disruption, data compromise, and third-party risk. Furthermore, the guide discusses global regulatory approaches to operational resilience, including frameworks from Europe, the UK, Australia, and Singapore, which aim to strengthen operational resilience in financial sectors. It also emphasizes the importance of governance and accountability in operational risk management, stressing the need for senior management involvement and the implementation of real-time monitoring systems.