As the business environment evolved, operational risk discipline has developed and reshaped itself. With continued regulatory focus and catastrophic industry events, it has become a crucial topic of the strategic agenda. This was the main theme of a recent webinar held by Bank of Valletta.

While introducing the webinar, Elena Pykhova, executive head of operational risk management at BOV, defined operational risk management frameworks to be an additional asset that creates real value and puts an organisation in a more resilient and stronger position.

“Triggering an effective risk management system is not a simple process, as it requires cultivating a cultural and behavioural change to align to the organisation’s risk appetite,” Pykhova said.

She stressed the importance of not only identifying any emerging risk but also assessing, managing and reporting it.

Operational risk can come in several forms such as IT failures, incidents and cyberattacks, which can cause serious damages on an organisation’s operations and reputation.

BOV continuously strengthens its risk management structure by performing risk assessments and scenario analysis. The bank also equips its own employees with specialised training programmes to develop their skills in being actionable and prone to potential risks.

Antoine Aquilina, information security officer at BOV, focused more on the rise of cybercrime and the threats it brings about.

“Some people think that technology is the main cause for the rise in cybercriminals, but they tend to forget that how we use technology really determines our position against such attacks,” he said.

He mentioned the concept of being cybersmart, which entails evolving with the digital spectrum while maintaining a monitored risk environment.

“At BOV, we nurtured a more governed culture through risk controls, monitoring data assets and continuously training our employees to be capable of recognising and combatting cybercrime,” Aquilina said.

“Cybersecurity risk management must never stop, as the landscape of these threats will continue to change and develop.”