Operational risk scenarios - RECAP

Using weak passwords to access highly confidential documents leading to unintended information leakage

• Process risk

• People risk

• System risk

• External event risk

Lack of training available to build knowledge and skillset for team members to carry out day-to-day duties

• System risk

• People risk

• External event risk

• Process failure risk

Existing applications not be compatible with newer software or operating system updates

• System risk

• People risk

• Process risk

• External event risk

Potential attacks to our employees in London office after announcement to implement SPCO

• People risk

• System risk

• External event risk

• Process risk

Intentional leakage of bonus tier payout prior to approved release by a disgruntled team member

• People risk

• Process risk

• External event risk

• System risk

Features in new payment system does not meet business requirements such as performance report, exposure report, transaction report

• Process risk

• People risk

• External event risk

• System risk

The inadequate SOP design of the payment approval process that couldn't cope with high volume of transactions combined with insufficient staffing resulted in approval process becoming rushed with many incorrect data entries

• System risk

• External event risk

• Process risk

• People risk

Traders receiving incorrect trade details or instruction

• External event risk

• System risk

• People risk

• Process risk

The company invests in a new emerging market of a foreign country. The foreign government imposes unexpected capital controls and restricts the movement of funds out of the country due to political instability. This risk is a type of

• People risk

• External event risk

• System risk

• Process risk

Absence of testing prior to go-live of new trade system has worried trading team because they need to ascertain system's performance during a period of high market volatility

• System risk

• Process risk

• External event risk

• People risk