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

Aug 22, 2023 / 6 Minutes Read / By Albert

How to Become

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Organisational Risk Management Auditors are responsible for conducting operational risk management audits to assess the effectiveness of companies' operational risk management processes. This is an important role, as operational risk management can have a significant impact on a company's performance and financial health. By identifying potential risks and recommending changes to existing processes, Operational Risk Management Auditors help organisations proactively manage their operations, ensuring they are compliant with applicable regulations. Additionally, Operational Risk Management Auditors help to ensure that companies are able to respond quickly to new or evolving threats, remain competitive in the marketplace, and maintain their reputation for reliability and trustworthiness.

Steps How to Become

Obtain a Bachelor's Degree. To qualify for a job as a senior operational risk management auditor, you must have at least a bachelor's degree in a related field, such as accounting, finance, or business administration.
Obtain Professional Certification. Employers may also require that senior operational risk management auditors have professional certification, such as Certified Internal Auditor (CIA) or Certified Public Accountant (CPA).
Gain Relevant Experience. You may be able to qualify for a job as a senior operational risk management auditor with several years of experience in accounting, auditing, or risk management.
Obtain Advanced Training. Senior operational risk management auditors should have extensive knowledge of auditing standards and regulations. Consider taking additional courses to gain expertise in these areas.
Participate in Professional Organizations. Joining professional organizations such as the Institute of Internal Auditors (IIA) can help you stay current on regulations and developments in the field. It can also help you network with other professionals and make connections that could lead to job opportunities.

Staying ahead and qualified in operational risk management auditing requires a commitment to ongoing education and professional development. To be successful, operational risk management auditors must have a comprehensive understanding of industry regulations and standards, maintain strong analytical and problem solving skills, and keep up with the latest technology and trends. To stay ahead and qualified, auditors should pursue higher levels of certification and participate in professional development courses that cover topics such as emerging technologies, industry-specific regulatory frameworks and risk management best practices.

auditors should build their network of colleagues and peers who can offer insights into the changing landscape of operational risk management. By staying educated on industry developments and networking with other professionals, operational risk management auditors will not only remain ahead of the curve but also be better equipped to handle the unique challenges of the profession.

You may want to check Corporate Auditor, Information Systems Auditor, and Revenue Cycle Management Auditor for alternative.

Job Description

Design and implement operational risk management frameworks, processes and procedures.
Identify, analyze, and evaluate operational risks within the organization.
Develop and coordinate operational risk management audit plans.
Conduct operational risk management audits and review controls in place to mitigate risk.
Assist in the development of operational risk management policies, procedures, and standards.
Prepare and present audit reports to management.
Monitor changes in regulations, industry standards, and best practices related to operational risk management.
Stay up to date on the latest developments in risk management technology and trends.
Ensure compliance with applicable laws, regulations, and internal policies.
Provide training and guidance to staff on operational risk management concepts and best practices.

Skills and Competencies to Have

Knowledge of risk management principles and best practices.
Proficiency in developing and executing operational risk management audit plans.
Ability to assess compliance with applicable laws, regulations, and corporate policies.
Ability to identify key risks and control gaps in operational processes.
Ability to develop risk-based audit programs.
Ability to communicate complex risk management information to stakeholders.
Knowledge of data analytics and related technologies for operational risk management.
Ability to develop and implement operational risk management frameworks and processes.
Ability to work effectively with cross-functional teams to develop solutions.
Excellent written and verbal communication skills.

Operational Risk Management Auditors must possess a variety of skills in order to be effective. One of the most important skills is strong analytical and problem-solving capabilities. This enables them to quickly assess potential risks and develop strategies to mitigate them.

Auditors must also have excellent communication skills, both written and verbal, to effectively explain their findings and recommendations to management. they must be highly organized and detail-oriented in order to effectively review systems and processes, identify risks, and develop solutions. Finally, they must possess strong research and investigative abilities to ensure they are able to uncover any potential risks that may be hidden within the organization.

All of these skills are essential for Operational Risk Management Auditors to be successful in their roles.

Systems Auditor, Government Contract Compliance Auditor, and Compliance Monitoring Auditor are related jobs you may like.

Frequent Interview Questions

What experience do you have in operational risk management auditing?
How do you ensure that operational risk management audits are conducted in accordance with all applicable regulations and internal policies?
Describe the process for identifying, assessing and mitigating operational risk.
What techniques do you use to identify operational risk factors?
How do you evaluate the effectiveness of operational risk management controls?
How do you use data analytics to support your audit findings?
Describe your experience in developing and implementing risk management frameworks.
How do you assess the adequacy of a firms internal controls?
What challenges have you experienced when conducting operational risk management audits?
How do you ensure that all audit findings are documented and tracked to closure?

Common Tools in Industry

Heat Map. A visual representation of the potential risks associated with an organization's activities, operations, and procedures. (eg: A heat map of the banking sector showing areas of high risk associated with customer data security).
Risk Assessments. A systematic process of evaluating the potential risks of an organization's activities and operations. (eg: A risk assessment of a company's IT systems to determine potential areas of vulnerability. )
Internal Audit. An independent assessment of an organization's internal processes and procedures, to ensure they are operating efficiently and effectively. (eg: An internal audit of a company's financial controls to ensure accuracy and reliability).
Key Risk Indicators (KRI). A metric used to measure the progress or success of an organization's risk management efforts. (eg: A KRI for the company's IT systems to measure the effectiveness of its data security measures. )
Gap Analysis. A comparison between an organization's current performance and potential goals to identify any discrepancies. (eg: A gap analysis of a company's existing risk management policies compared to industry standards).
Risk Register. A comprehensive list of all the potential risks an organization faces, along with their associated impacts and controls. (eg: A risk register for a company's IT systems, detailing known threats and their proposed solutions).

Professional Organizations to Know

Institute of Operational Risk (IOR)
Professional Risk Managers International Association (PRMIA)
Institute of Risk Management (IRM)
Global Association of Risk Professionals (GARP)
The Institute of Internal Auditors (IIA)
The Association of Certified Fraud Examiners (ACFE)
Financial Industry Regulatory Authority (FINRA)
The American Institute of Certified Public Accountants (AICPA)
Association of Chartered Certified Accountants (ACCA)
International Association of Risk and Compliance Professionals (IARCP)

We also have Senior Compliance Monitoring Auditor, Senior Network Security Auditor, and Payroll Auditor jobs reports.

Common Important Terms

Operational Risk. The risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events.
Risk Management. The process of identifying, assessing, and managing risks to an organization or its stakeholders.
Control Environment. The control environment sets the tone of an organization and is the foundation for all other components of internal control. It is the attitude, awareness and actions of the organization's management, board and other personnel regarding the importance of internal control.
Compliance. The process of ensuring that an organization operates within the bounds of a given set of laws, regulations, standards and ethical principles.
Audit. An independent review and examination of records and activities to assess the adequacy, effectiveness and efficiency of operations.
Key Risk Indicators (KRI). Risk indicators used to measure and monitor risk levels in an organization.
Internal Controls. Procedures, policies and processes designed to provide reasonable assurance that objectives and goals are achieved.
Business Continuity Planning. A process to ensure that critical operations are able to continue in the event of an unexpected disruption.

Frequently Asked Questions

Q1: What is a Senior Operational Risk Management Auditor? A1: A Senior Operational Risk Management Auditor is responsible for assessing an organization's operational risk and ensuring that appropriate risk management controls are in place. They are responsible for analyzing financial data, identifying areas of risk, and providing recommendations for mitigating or eliminating those risks. Q2: What qualifications are required to be a Senior Operational Risk Management Auditor? A2: The qualifications to be a Senior Operational Risk Management Auditor typically include a bachelor's degree in accounting, finance, or a related field, as well as experience in risk management and auditing. Professional certifications such as Certified Internal Auditor (CIA) or Certified Risk Management Auditor (CRMA) may also be required. Q3: What types of organizations employ Senior Operational Risk Management Auditors? A3: Senior Operational Risk Management Auditors are typically employed by financial institutions, insurance companies, and other businesses that require a high level of risk management and compliance. Q4: What duties are typically performed by a Senior Operational Risk Management Auditor? A4: Typical duties performed by a Senior Operational Risk Management Auditor include conducting internal audits, analyzing financial data, identifying areas of risk, and providing recommendations for mitigating or eliminating those risks. They may also be responsible for developing and implementing risk management policies and procedures, training staff on risk management practices, and preparing reports for management. Q5: What kind of salary can a Senior Operational Risk Management Auditor expect to earn? A5: According to PayScale, the average salary for a Senior Operational Risk Management Auditor is $87,509 per year. Salaries can vary based on location, years of experience, and other factors.

Web Resources

Senior Auditor, Strategy and Risk Management careers.purdue.edu
Operational Risk Management risk.gmu.edu
Risk Management | Risk Management & Audit Services - Harvard rmas.fad.harvard.edu