Improving Operational Risk Management using Business Performance Management technologies

Abstract

Operational Risk Management (ORM) comprises the (continuous) management of all risks resulting from: Human actions, (failed) internal processes, systems and external events. Business Performance Management (BPM) technologies are believed to provide a solution for effective Operational Risk Management. Central in this research is the development and practical validation of a new maturity model. The maturity model consists of a process part, related to operational risk management implementation and technologies part, relating to BPM technologies used. This research followed the Design Science cycles approach as described by Hevner (Hevner A. R., 2007). There appears to be a strong relationship (0.78) with ORM process maturity and supporting BPM technologies. The maturity model as described in this paper provides a suitable path of technologies related to six distinctive stages for organizations driven towards continuous improvement of ORM processes.