Managing Operational Risk in a Changing World

Practitioner manual to operational risk blending contemporary challenges with case studies 

Managing Operational Risk in a Changing World is both a practitioner's manual and a classroom text that blends nearly 40 years of frontline experience with emerging themes that define today's risk landscape, from climate change and ESG to AI, DE&I, cyber threats, and pandemics. Unlike existing titles that focus on defining operational risk or recounting its history, this book is organized around contemporary challenges, showing how frameworks and methodologies can be applied in practice.  

The book contains interviews with industry veterans, from Barings to Silicon Valley Bank, who share their perspective and strategy for managing operational risk. In Managing Operational Risk in a Changing World, readers will find insights on: 

• Recent regulations focused on managing emerging risks, such as the Digital Operational Resilience Act (DORA) 
• Firewalls, intrusion detection systems, and encryption as critical elements in a robust approach to cyber risk management 
• Data governance and data controls―checking and cleaning up erroneous data, and performing independent reviews 
• Operational risks associated with geopolitical events, including people, processes, technology, and external factors 

The operational risk discipline is in flux, with regulators raising expectations and new risks constantly surfacing. Managing Operational Risk in a Changing World is required reading for all OpRisk professionals, academics, and students seeking to stay ahead of the curve. 

PENNY CAGAN is a Senior Risk Advisor, where she leads client-facing risk and control engagements with financial institutions. Previously, she served as Managing Director and Head of Operational Risk for UBS Americas and Head of Operational Risk and Governance at MUFG Americas. She founded one of the first operational risk databases, which became an industry standard. Her contributions have earned her Outstanding Contribution to Operational Risk and Ten Years of Excellence awards from Operational Risk & Regulation Magazine. She teaches as a part-time adjunct faculty member in Columbia University’s Enterprise Risk Management Master’s program and at NYU’s Management and Analytics Master’s Program.