https://ciohub.org/categories/financial-risk/ Recent content in Financial Risk on CIO Insight Hub https://ciohub.org/img/og.png https://ciohub.org/img/og.png Hugo -- 0.136.5 en Sat, 06 Nov 2021 08:00:00 +0800 https://ciohub.org/post/2021/11/operational-risk-management-development-history/ Sat, 06 Nov 2021 08:00:00 +0800 https://ciohub.org/post/2021/11/operational-risk-management-development-history/ <h2 id="introduction">Introduction</h2> <p>Operational Risk Management (ORM) has become a critical component of an organization&rsquo;s overall risk management strategy. But have you ever wondered how ORM evolved over time? In this blog post, we will take a journey through the historical development of Operational Risk Management, highlighting key milestones, events, and statistics that have shaped the industry into what it is today.</p> <h2 id="early-beginnings-pre-1980s">Early Beginnings: Pre-1980s</h2> <p>The concept of operational risk management dates back to the early 20th century, when organizations began to recognize the importance of managing non-financial risks. However, it wasn&rsquo;t until the 1980s that ORM started to gain traction. According to a study by the Basel Committee on Banking Supervision, in the 1980s, operational risk was responsible for approximately 20% of total bank losses.</p>