Operational Risk Manager Job Description [Updated for 2025]

In the dynamic world of business operations, the role of Operational Risk Managers is becoming increasingly critical.

As organizations navigate through complexities and challenges, the need for experienced individuals who can identify, analyze, and mitigate operational risks is continuously growing.

But let’s delve deeper: What is truly expected from an Operational Risk Manager?

Whether you are:

• A job seeker trying to understand the core responsibilities of this role,
• A hiring manager aiming to define the perfect candidate,
• Or simply interested in the intricacies of risk management,

You’ve come to the right place.

Today, we present a customizable Operational Risk Manager job description template, designed for effortless posting on job boards or career sites.

Let’s dive in without further ado.

Operational Risk Manager Duties and Responsibilities

Operational Risk Managers are in charge of managing and mitigating potential risks that can impact the efficiency and effectiveness of an organization’s operations.

They are adept at identifying and assessing risks, implementing strategic plans, and ensuring organizational compliance with industry regulations.

Their daily duties and responsibilities include:

• Identifying and assessing potential risks within an organization’s operational framework
• Developing and implementing risk management strategies to minimize potential impact
• Creating and executing business plans to address risk mitigation
• Ensuring compliance with internal and external regulations and policies
• Creating and managing operational risk reports for management and board review
• Developing policies and procedures for operational risk management
• Providing training to employees about risk management and compliance
• Conducting internal audits and investigations to identify operational risks
• Coordinating with various departments to ensure alignment with risk management objectives
• Maintaining updated knowledge of industry trends, standards and regulatory requirements related to risk management

 

Operational Risk Manager Job Description Template

Job Brief

We are seeking a proficient Operational Risk Manager to join our team.

The ideal candidate will be responsible for identifying and managing potential risks to the organization.

This will include implementing risk mitigation strategies, developing internal policies to minimize risks, and conducting regular risk assessments.

The Operational Risk Manager will have a strong understanding of risk management methodologies and excellent analytical skills.

 

Responsibilities

• Implement an effective risk management framework and processes.
• Conduct regular risk assessments to identify potential risks.
• Develop risk mitigation strategies and processes.
• Work closely with business units to understand their risk exposures.
• Prepare risk management reports for senior management and stakeholders.
• Ensure compliance with relevant regulatory requirements and standards.
• Provide training and support on risk management to staff.
• Monitor and evaluate the effectiveness of risk management processes.
• Contribute to strategic planning and decision-making at a senior level to ensure operational risk considerations are included.

 

Qualifications

• Proven experience as an Operational Risk Manager or similar role.
• Knowledge of risk management methodologies and tools.
• Strong analytical skills and attention to detail.
• Excellent communication and presentation skills.
• Understanding of regulatory requirements related to risk management.
• A degree in finance, business administration, or a related field.
• Certifications such as Certified in Risk and Information Systems Control (CRISC) or Professional Risk Manager (PRM) will be an advantage.

 

Benefits

• 401(k)
• Health insurance
• Dental insurance
• Retirement plan
• Paid time off
• Professional development opportunities

 

Additional Information

• Job Title: Operational Risk Manager
• Work Environment: Office setting with occasional travel for meetings and events.
• Reporting Structure: Reports to the Chief Risk Officer or Director of Risk Management.
• Salary: Salary is based on candidate’s experience and qualifications, market and business considerations.
• Pay Range: $85,000 minimum to $135,000 maximum
• Location: [City, State] (specify the location or indicate if remote)
• Employment Type: Full-time
• Equal Opportunity Statement: We are an equal opportunity employer and value diversity at our company. We do not discriminate on the basis of race, religion, color, national origin, gender, sexual orientation, age, marital status, veteran status, or disability status.
• Application Instructions: Please submit your resume and a cover letter outlining your qualifications and experience to [email address or application portal].

 

What Does an Operational Risk Manager Do?

Operational Risk Managers work primarily within financial institutions and corporations, evaluating and mitigating risks that might affect the operations of the organization.

They are tasked with identifying potential risks to the organization’s operations and evaluating the company’s ability to manage and withstand these risks.

This might include risks associated with financial transactions, systems failure, process inefficiencies, or legal compliance.

Operational Risk Managers develop and implement policies and procedures to manage risk, and make recommendations to senior management about how to avoid or mitigate potential risks.

They also work closely with other risk management professionals and departments such as internal audit, compliance, and legal to ensure a cohesive risk management strategy is in place.

In addition, they may be responsible for developing and implementing training programs to educate employees about risk management procedures and policies.

Furthermore, they monitor and analyze risk management data, and report on their findings to senior management.

They are often called upon to forecast potential risks in the face of changes in the industry or market conditions.

 

Operational Risk Manager Qualifications and Skills

Operational Risk Managers must possess a combination of technical knowledge, industry understanding, and interpersonal skills to effectively identify, assess, and mitigate potential risks within an organization.

• Strong analytical skills to detect and evaluate risks, as well as determine the impact of these risks on the organization.
• Excellent knowledge of risk management principles and frameworks, coupled with the ability to implement these within an organization.
• Exceptional communication skills to clearly convey risk assessments, strategies, and mitigation plans to colleagues, stakeholders, and executive management.
• Attention to detail and organizational skills to manage multiple risk assessments, reports, and mitigation strategies concurrently.
• Interpersonal skills to work well within a team and collaborate with different departments within the organization.
• Problem-solving skills to develop effective solutions to mitigate identified risks.
• Proficiency in risk management software to monitor and analyze operational risks.

 

Operational Risk Manager Experience Requirements

Operational Risk Managers often have a minimum of 5 to 7 years of experience in risk management, audit, or a related field.

This may be through full-time roles or significant internships in financial services, banking, or insurance industries.

Entry-level candidates for this role are expected to have a comprehensive understanding of risk management principles and methodologies, usually gained through academic study and practical application.

Candidates with 3 to 4 years of experience often have developed their skills in assessing and mitigating operational risks, implementing risk management strategies, and preparing risk reports.

Their experience might also involve compliance, regulatory requirements, and internal controls.

Those with more than 7 years of experience usually have extensive experience in managing risk frameworks and providing strategic direction in managing operational risks.

They may also have leadership experience, overseeing risk management teams, and working closely with senior management.

High-level Operational Risk Manager roles may require more advanced experience, with candidates often having a proven track record in developing and implementing risk policies and procedures, conducting complex risk assessments, and managing relationships with regulators.

They may also have experience in conducting training sessions on risk awareness and risk management procedures within the organization.

 

Operational Risk Manager Education and Training Requirements

Operational Risk Managers typically require a bachelor’s degree in finance, business, economics or a related field.

In-depth knowledge of risk management principles and regulations is crucial for this role.

They should be familiar with the use of risk assessment software and predictive modeling.

Some positions may require Operational Risk Managers to have a master’s degree in business administration or finance.

It is not uncommon for employers to give preference to candidates who have professional certifications such as Certified in Risk and Information Systems Control (CRISC) or Financial Risk Manager (FRM).

In addition to formal education, Operational Risk Managers should have several years of relevant work experience in the finance or risk management field.

Continued professional development is important in this role due to the rapidly changing nature of business risk.

Therefore, Operational Risk Managers are often encouraged to attend workshops, seminars, and training sessions to stay up-to-date with the latest risk management trends and strategies.

Furthermore, possessing strong analytical and problem-solving skills, coupled with excellent communication abilities, is vital for an Operational Risk Manager.

They must also demonstrate a strong ability to make sound decisions under pressure.

 

Operational Risk Manager Salary Expectations

An Operational Risk Manager can expect to earn an average salary of $113,460 (USD) per year.

However, this can vary greatly depending on the individual’s level of experience, specific industry, and geographic location.

The company size and the complexity of its operations can also significantly impact the salary range.

 

Operational Risk Manager Job Description FAQs

What is the difference between an Operational Risk Manager and a Financial Risk Manager?

Operational Risk Managers primarily focus on potential risks arising from internal processes, systems, and people in the organization.

They work to minimize losses due to inadequate or failed internal systems.

On the other hand, Financial Risk Managers concentrate on risks related to the financial market, such as credit risk, market risk, and liquidity risk.

They work to minimize potential financial losses.

 

What are the key duties of an Operational Risk Manager?

Operational Risk Managers are responsible for identifying and assessing potential risks within the organization’s operations.

Their duties include developing risk management strategies and processes, conducting internal audits to evaluate risks, preparing risk reports, and implementing risk mitigation plans.

They also work closely with different departments to ensure compliance with risk management policies and regulatory requirements.

 

What qualities make a good Operational Risk Manager?

An effective Operational Risk Manager needs to have a strong analytical mind to identify and assess potential risks.

They should also possess excellent communication and interpersonal skills to effectively work with different departments and present risk reports to upper management.

Integrity and strong ethical standards are essential as they deal with sensitive data and risk management issues.

Moreover, they need to be detail-oriented, proactive, and have a good understanding of business processes and regulatory requirements.

 

What should you look for in an Operational Risk Manager’s resume?

A qualified Operational Risk Manager’s resume should demonstrate a background in business, finance, or a related field, coupled with substantial experience in risk management.

Relevant certifications such as the Financial Risk Manager (FRM) or Certified in Risk and Information Systems Control (CRISC) are a plus.

Look for evidence of analytical skills, familiarity with risk assessment tools, and a track record in developing and implementing risk management strategies.

Experience in conducting internal audits and a solid understanding of regulatory requirements are also crucial.

 

Do Operational Risk Managers need any specific qualifications?

Most Operational Risk Managers hold a bachelor’s degree in business, finance, or a related field.

Some organizations prefer candidates with a Master’s degree in Business Administration (MBA) or Risk Management.

Relevant professional certifications, such as the Certified in Risk and Information Systems Control (CRISC), are also beneficial.

Furthermore, Operational Risk Managers should have substantial experience in risk management or a related field.

 

Conclusion

And there you have it.

Today, we’ve unveiled the intricate details behind the role of an operational risk manager.

And guess what?

It’s not just about assessing risks.

It’s about safeguarding the organization’s operations, one risk evaluation at a time.

With our comprehensive operational risk manager job description template and real-world examples, you’re all set to step up your game.

But why limit yourself?

Dig deeper with our job description generator. It’s your gateway to crafting precise job listings or refining your resume to excellence.

Remember:

Every risk evaluated is a step towards a safer operational environment.

Let’s secure that future. Together.

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