AIMA publishes guide on best practices for operational risk management (ORM)

AIMA - Alternative Investment Management AssociationThe Alternative Investment Management Association (AIMA), an organization representing the global hedge fund industry, has published a new resource document outlining best practices for operational risk management (ORM).

Operational risk, as defined by the Basel committee (2012), is “the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.” AIMA’s best practices cover a wide range of operational risks, including:

  • Trading, execution and market manipulation risks
  • Post-trading risks
  • Counterparty risks
  • Business conduct and reputational risks
  • Technology and cyber security risks
  • Business continuity and disaster recovery risks
  • Internal and external fraud and financial crime prevention
  • Outsourcing risks
  • Communications risks
  • Legal, regulatory and compliance risks
  • Financial risks
  • Insurance

The full version of the report is only available to AIMA members, but you can download a summary from their web site.

Iceberg has worked with a number of financial organizations to implement RSA Archer to manage ORM, and Archer was recently named a market leader by Gartner.  Send us a note at info@icebergnetworks.com if you’d like to talk to one of our subject matter experts about Iceberg’s ORM practice.

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Glen Gower

About the author

Glen is the director of marketing and communications at Iceberg.