Operational Risk Management
Build an ORM programme that evolves as your business does.
Operational risk — the risk of loss from failed people, processes, systems, or external events — is the most pervasive risk category in financial services. It is also the one most likely to be managed through bureaucratic processes that consume significant time and produce reporting that nobody acts on.
Yuwa Solutions builds ORM programmes that are genuinely useful — frameworks that surface operational risk in a structured way, controls that are tested rather than assumed to be working, and reporting that tells leadership what they need to know to make decisions. Not what is easiest to measure.
Our Operational Risk Services
Explore our core operational risk capabilities. Select any practice area below to navigate directly to its methodology, deliverables, and stakeholder coverage.
ORM Framework Design
Design a fit-for-purpose operational risk management framework — governance, policy, risk categorisation, assessment methodology, and reporting structure — calibrated to your organisation's size, risk profile, and regulatory obligations.
Operational Risk Identification & Assessment
Structured identification and assessment of operational risks across business units — facilitated workshops, risk scoring methodology, and a risk register that reflects operational reality.
Control Identification & Testing
Identify the controls in place for each material operational risk, assess their design effectiveness, and test their operating effectiveness — producing a clear view of residual risk exposure.
Incident & Loss Data Management
Design and implement an operational risk incident capture and loss data management process — including incident classification, reporting thresholds, root cause analysis, and regulatory notification protocols.
ORM Reporting & Governance
Board-ready operational risk reporting, committee governance design, and escalation framework — giving leadership a consistent, meaningful view of operational risk exposure across the organisation.
Fit-for-purpose operational risk governance calibrated to your risk profile.
ORM Framework Design
What It Is
An ORM framework provides the governance structure and methodology within which operational risk is identified, assessed, managed, and reported across the enterprise. Without it, operational risk management is fragmented — different business units using different approaches, producing inconsistent data, and leaving leadership without a coherent view of the organisation's operational risk exposure. Yuwa Solutions designs ORM frameworks that are practical, scalable, and aligned to the regulatory expectations that apply to your organisation.
What We Deliver
Chief Risk Officers and risk functions at regulated financial institutions building or rebuilding their operational risk management capability.
Grounding operational risk registers in operational reality.
Operational Risk Identification & Assessment
What It Is
Identifying operational risks requires more than asking business units to list what could go wrong. A structured assessment process — using facilitated workshops, scenario analysis, and process-level risk mapping — surfaces risks that self-assessment alone would miss, and produces a risk register grounded in operational reality rather than theoretical possibility. Yuwa Solutions facilitates operational risk identification workshops using a structured methodology, scores risks against your approved framework, and produces a prioritised risk register that forms the foundation for control testing and monitoring.
What We Deliver
Risk functions seeking a structured, consistent approach to operational risk identification across business units.
Moving from assumed control effectiveness to empirical testing.
Control Identification & Testing
What It Is
Controls are only effective if they actually work. Design effectiveness — whether a control is designed to address the risk it is intended to mitigate — and operating effectiveness — whether it is working as designed in practice — are two different things. Many organisations assume controls are effective without testing them. Yuwa Solutions conducts structured control identification and testing engagements: mapping controls to risks, assessing design effectiveness, testing operating effectiveness through sampling and inquiry, and rating residual risk after controls.
What We Deliver
Risk, compliance, and internal audit functions seeking an objective view of control effectiveness across material operational risk areas.
Transforming operational incidents into actionable risk intelligence.
Incident & Loss Data Management
What It Is
Operational risk incidents — systems failures, process errors, external fraud, regulatory breaches — need to be captured, classified, and analysed consistently to support risk management, regulatory reporting, and capital calculation. Most organisations have an incident reporting process, but it is often incomplete: incidents are under-reported, root causes are not captured, and data is not used to inform risk assessment or control improvements. Yuwa Solutions designs incident and loss data management processes that are practical, consistently applied, and produce data that is actually used.
What We Deliver
Risk and compliance functions seeking to improve the quality and completeness of operational risk incident data.
Decision-grade operational risk intelligence for executive leadership and boards.
ORM Reporting & Governance
What It Is
Operational risk reporting should tell leadership where the risks are, how the controls are performing, and where action is needed. Most ORM reports do none of these things effectively. They present historical incident data without analysis, list risk ratings that have not changed in quarters, and run to lengths that discourage engagement. Yuwa Solutions designs ORM reporting frameworks and governance structures that produce meaningful, decision-grade information at the right level of aggregation for each audience.
What We Deliver
CROs and risk functions seeking to improve the quality and impact of operational risk reporting to management and the board.
Our Approach to Operational Risk
Operational risk management works only when it is embedded into daily operations — not bolted on as a compliance exercise. We design programmes that give first-line managers the tools to own their risks, and second-line oversight the data to challenge them effectively.
Rooted in Operational Reality
We design ORM processes around how your business actually operates daily — not theoretical risk models that generate administrative overhead without risk insight.
Tested, Not Assumed Controls
We differentiate between control design on paper and operating effectiveness in practice, establishing empirical testing routines that prove risk mitigation.
No-Blame Incident Capture
We structure incident capture and root-cause analysis to cultivate open reporting and systemic learning, rather than compliance box-checking or finger-pointing.
Decision-Grade Governance
Reporting is synthesized for executive action. We replace sprawling data catalogs with focused risk intelligence that drives board and leadership decisions.
Frequently Asked Questions
Practical answers to common questions about our operational risk frameworks, RCSA methodology, KRI design, and control testing programmes.
Ready to build a more effective ORM programme?
Speak directly with our operational risk advisory team about your institution's current framework maturity and regulatory readiness.