Murphy Choy

Some thoughts about operational risk

In Uncategorized on October 5, 2011 at 7:00 am

A few days ago, there was a seminar about operational risk which covers the basics of operational risk management as well as some of the challenges faced by the practitioners. During the entire session, there was extensive coverage of the self risk control assessment. It was an interesting discussion and this is in turn used by some of the students in the course work.

There was a student who discussed about the use of e-mail surveillance in order to analyse the content of e-mails so as to create an early warning system for the management. This is an interesting idea but nonetheless a dangerous one. In fact this is one of the key issue debated by the proponents of liberty against those of control. And I can understand the dangers and possible misuses of the system. In fact this is one of the reason why an ex-CEO was removed from his position.

While there have been extensive research into masking of data, it is still possible to uncover the identities of individuals and likely to lead to privacy issues. And this is one of the operational risk issue that one may face when they are trying to build a system to highlight issues in the management. Careful use of data and elaborate systems will be needed in order to paint the proper picture of operational issues in the company without infringing the privacy of the employees.

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