How to Be Operational Risk Management Auditor - Job Description, Skills, and Interview Questions

Oct 7, 2023 / 5 Minutes Read / By Albert

How to Become

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Operational Risk Management Auditors play an important role in assessing an organization's overall risk management posture, as the effectiveness of an organization's risk management process is essential to its success. By carrying out detailed reviews of an organization's controls and processes, they are able to identify areas of risk or potential issues. When issues are identified, the auditor has the ability to recommend changes to existing procedures or suggest new controls to reduce the level of risk, which in turn can lead to improved efficiency, cost savings, and increased customer satisfaction. Furthermore, operational risk management auditors also help organizations comply with industry regulations and standards, such as Sarbanes-Oxley, HIPAA, and ISO standards.

Steps How to Become

Obtain a Bachelors Degree. The first step to becoming an Operational Risk Management Auditor is obtaining a bachelors degree in a relevant field such as accounting, finance, risk management, or business administration.
Consider Obtaining Professional Certification. Obtaining a professional certification in risk management or auditing can help set you apart from other candidates and increase your marketability. Consider obtaining the Certified Internal Auditor (CIA) or Certified Risk Management Professional (CRMP) certifications.
Gain Relevant Experience. It is important to gain experience in the field of operational risk management before applying for an auditor position. Consider working as a risk analyst, financial analyst, or internal auditor to gain the necessary experience.
Apply for an Auditor Position. Once you have the necessary experience and/or certifications, you can begin applying for positions as an operational risk management auditor. Be sure to highlight your relevant experience and certifications in your application and resume.
Stay Up-to-Date on Changes in the Field. As with any specialized field, it is important to stay up-to-date on changes in the field of operational risk management auditing. Consider taking continuing education courses or attending conferences to stay informed.

Operational Risk Management Auditors are essential to ensuring that organizations comply with regulations and mitigate potential losses. Their role is to identify, measure, assess, and monitor the risk associated with an organization's operations, and to ensure that the organization has appropriate processes and systems in place to manage those risks effectively. When operational risk management auditors do their job properly, organizations benefit from increased cost savings, improved operational efficiency, and improved customer service.

On the other hand, failure to manage operational risks can lead to financial losses, reputational damage, and regulatory noncompliance. Therefore, it is critical for organizations to hire ideal and competent operational risk management auditors who have the knowledge, experience, and skills needed to properly assess operational risks and identify potential solutions.

You may want to check External Auditor, Senior Tax Auditor, and Information Systems Auditor for alternative.

Job Description

Monitor and evaluate operational risk management systems, policies, and procedures.
Develop audit plans and audit programs to assess risk management processes.
Perform audit tests of risk management activities and processes.
Identify and report control weaknesses and potential areas of risk.
Develop and recommend corrective actions to improve operational risk management.
Prepare audit reports and other written communications to document audit results.
Follow up with management to ensure corrective action has been taken on identified issues.
Participate in special projects or investigations as required.
Assist in the development of risk management training materials and programs.
Stay current on advances in the field of operational risk management.

Skills and Competencies to Have

Knowledge of operational risk management principles, processes and controls.
Ability to identify, analyze, assess and document operational risks.
Experience in developing and implementing operational risk management programs.
Knowledge of regulatory standards, industry best practices and relevant laws.
Familiarity with global banking and financial services industry.
Ability to write effective audit reports and communicate findings.
Excellent organizational, problem-solving, and analytical skills.
Proficiency in Microsoft Office Suite (Word, Excel, PowerPoint).
Strong interpersonal and communication skills.
Ability to work independently and as part of a team.
Ability to manage multiple tasks and prioritize workload in a dynamic environment.

Operational Risk Management Audit is an essential task for any business. It helps to identify and evaluate the potential risks that can affect the operations of a company. An effective operational risk management auditor should possess a wide range of skills, including strong analytical and problem-solving abilities, excellent communication and interpersonal skills, knowledge of industry regulations and regulations, and the ability to effectively communicate findings to senior management.

the auditor should be knowledgeable about financial accounting principles and have a strong understanding of the company's internal control environment. By having these skills, the auditor can assess the effectiveness of the company's risk management program, identify any gaps or weaknesses in the system, make recommendations on how to mitigate any potential risks, and ultimately help the company protect itself from possible losses. By doing so, the auditor can ensure that the company remains compliant with regulations and secure from potential liability.

Senior Inventory Auditor, Forensic Accounting Auditor, and Compliance Monitoring Auditor are related jobs you may like.

Frequent Interview Questions

What experience do you have in conducting operational risk management audits?
How do you assess and mitigate operational risk?
What processes have you developed to ensure compliance with applicable laws and regulations?
How do you evaluate the effectiveness of risk management programs?
What challenges have you faced while conducting operational risk management audits?
How do you maintain up-to-date knowledge of relevant laws and regulations?
What strategies do you use to identify potential operational risks?
What techniques do you use to investigate suspected operational risks?
How do you ensure that recommendations are followed through on after an audit is complete?
What measures do you use to ensure accuracy and completeness when conducting an operational risk management audit?

Common Tools in Industry

Process Mapping Tool. A tool used to graphically represent a process in order to identify potential areas of improvement. (e. g. Microsoft Visio)
Risk Assessment Tool. A tool used to identify, analyze, and prioritize potential risks associated with a given process or system. (e. g. Qualtrics Risk Manager)
Key Risk Indicators (KRI). A metric used to measure and track potential risk events and incidents. (e. g. Beazley KRI Tracker)
Internal Control Evaluation Tool. A tool used to evaluate the effectiveness of internal controls and identify opportunities for improvement. (e. g. Process Weaver Internal Control Evaluation Tool)
Incident Reporting Tool. A tool used to collect and track incident reports from employees, customers, and other stakeholders. (e. g. ServiceNow)
Audit Software. A software solution used to automate the audit process and track audit findings and recommendations. (e. g. ACL Analytics)

Professional Organizations to Know

Institute of Operational Risk (IOR)
Professional Risk Managers International Association (PRMIA)
Association of Certified Fraud Examiners (ACFE)
The Risk Management Association (RMA)
The Chartered Institute for Securities & Investment (CISI)
The Institute of Internal Auditors (IIA)
The Institute of Risk Management (IRM)
The Global Association of Risk Professionals (GARP)
The Information Systems Audit and Control Association (ISACA)
The International Association of Risk and Compliance Professionals (IARCP)

We also have Business Process Auditor, Staff Auditor, and Government Contract Compliance Auditor jobs reports.

Common Important Terms

Risk Assessment. A systematic process of evaluating the potential risks associated with a business process, project, or activity.
Risk Mitigation. Actions taken to prevent or reduce the possibility of an adverse event or situation.
Risk Control. Measures taken to reduce the probability of a risk materializing, and to reduce its potential impact if it does.
Risk Appetite. The level of risk an organization is willing to accept in pursuit of its objectives.
Compliance. The process of adhering to rules, laws, and regulations set by external authorities or within an organization.
Auditing. The systematic review of an organization's processes, activities, and records to assess their accuracy and reliability.
Operational Risk. The risk of loss due to inadequate or failed internal processes, people, and systems or external events.
Key Risk Indicators (KRI). Metrics used to measure the likelihood or impact of potential risks.

Frequently Asked Questions

Q1: What is Operational Risk Management? A1: Operational Risk Management is the practice of identifying and managing potential losses caused by operational factors, such as inadequate or failed internal processes, people and systems, or external events. Q2: What is the role of an Operational Risk Management Auditor? A2: An Operational Risk Management Auditor is responsible for assessing an organization's operational risk management processes, evaluating their effectiveness, and making recommendations for improvement. Q3: What are the key components of an effective Operational Risk Management program? A3: The key components of an effective Operational Risk Management program include risk identification, risk assessment, risk control, and reporting and monitoring. Q4: What entities are typically involved in an Operational Risk Management Audit? A4: An Operational Risk Management Audit typically involves representatives from the organization's risk management team, internal auditors, external auditors, and information technology personnel. Q5: What standards are used to guide Operational Risk Management Audits? A5: Operational Risk Management Audits are typically guided by standards such as the International Organization for Standardization's ISO 31000 and the Committee of Sponsoring Organizations of the Treadway Commission's COSO ERM framework.