QUESTION 4

4.1. The main objective of operational risk monitoring is the evaluation of the effectiveness of the operational risk management process. The aim is the provision for management, of timely information on any shortcomings and deficiencies that could negatively influence achieving the business objectives.

Using a diagram, illustrate the risk monitoring process. The illustration must highlight the inputs, tools and techniques and its outputs.

(25 marks)

4.2. The monitoring of the operational risk management process is a continuous action taken in order to ensure the effectiveness of each of the components of the operational risk management process. Discuss in detail the components of the operational risk management process.

(25 marks)