The role of data analytics within operational risk management: A systematic review from the financial services and energy sectors

Cornwell, Nikki; Bilson, Christopher; Gepp, Adrian; Stern, Steven; Vanstone, Bruce J

doi:10.1080/01605682.2022.2041373

Cited by 17 publications

(11 citation statements)

References 120 publications

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“…According to Cornwell et al (2022), risk analysis in energy and natural resources (ENR) management, especially as it relates to operational risk management (ORM) has transformed in the past one decade. Major regulatory changes and loss events in the recent two decades have highlighted the importance of effective ORM and compliance to set standards (Cornwell et al, 2022). Risk management transformed in the 2008 to 2009 period where risk evaluators shifted their focus from financial to operational risks.…”

Section: Threat Based Risk Assessment Approachmentioning

confidence: 99%

“…This was influenced by the global financial crisis that occurred during the season and led to massive losses to industries and individual companies. It is also worth noting that changes to ISO frameworks and COSO, together with data driven evaluations, and regulatory emphasis on ESG have all influenced energy risk management and estimation (Cornwell et al, 2022). Despite these changes, Cornwell et al (2022) reveal that the area of energy risk management is still in its infancy stage due to the high-risk profile in energy regulation coupled with the unprecedented levels of future unknown risks that must be estimated and prevented.…”

Section: Threat Based Risk Assessment Approachmentioning

confidence: 99%

“…It is also worth noting that changes to ISO frameworks and COSO, together with data driven evaluations, and regulatory emphasis on ESG have all influenced energy risk management and estimation (Cornwell et al, 2022). Despite these changes, Cornwell et al (2022) reveal that the area of energy risk management is still in its infancy stage due to the high-risk profile in energy regulation coupled with the unprecedented levels of future unknown risks that must be estimated and prevented. One notable energy-risk management approach is the Systems-Theoretic Accident Model and Processes (STAMP), which has gained worldwide use in the 21 st century (Cornwell et al, 2022).…”

Section: Threat Based Risk Assessment Approachmentioning

confidence: 99%

“…Despite these changes, Cornwell et al (2022) reveal that the area of energy risk management is still in its infancy stage due to the high-risk profile in energy regulation coupled with the unprecedented levels of future unknown risks that must be estimated and prevented. One notable energy-risk management approach is the Systems-Theoretic Accident Model and Processes (STAMP), which has gained worldwide use in the 21 st century (Cornwell et al, 2022). Liu and Li (2022) reveal that the rapid increase in investments in the energy sector poses similar high risks to the sector.…”

Section: Threat Based Risk Assessment Approachmentioning

confidence: 99%

“…This perspective helps in identifying all the risks influencing a sector or entity, enabling effective management of such risks. Cornwell et al (2022) add that the many considerations that clouded risk assessment and management in the 1990s led to newer versions of risk management that focused on the entire enterprise and sector rather than individual entities and systems. This new approach was necessitated by the emergence of continued catastrophic events, corporate scandals that caused risks, financial crises, and technological advancements that equally pose newer risks.…”

Section: A Technical and Managerial Considerationsmentioning

confidence: 99%

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Risk Analysis in Energy Program Management

Ouabira

2023

EJBMR

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Risk management is one of the best precautionary interventions undertaken in various sectors to minimize the consequence that accrues whenever risks or crises occur. Risk assessment is the first step in the risk management process, and it leads to risk identification, which is followed by risk evaluation to understand the magnitude and possible impact of the risk in case it occurs. Risk assessment and management in the energy sector are not exceptional since risks related to energy are usually catastrophic and lead to loss of life and destruction of the environment. The increase in risks related to energy use and the complexity of managing such risks necessitates the adoption of appropriate risk assessment and risk evaluation mechanisms to guarantee high-quality speculation and forecasting. This report focuses on the use of a semi-quantitative risk assessment approach and the threat-based risk assessment approach. Each of these techniques uses a different paradigm but they all offer invaluable findings regarding risks in the energy sector to enable effective prioritization of such risks when designing interventions.

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Section: Threat Based Risk Assessment Approachmentioning

confidence: 99%

Section: Threat Based Risk Assessment Approachmentioning

confidence: 99%