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Improving Operational Risk Management Using Business Performance Management Technologies

Author

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  • Bram Pieket Weeserik

    (Department of Information and Computing Sciences, Utrecht University, Princetonplein 5, 3584 CC Utrecht, The Netherlands)

  • Marco Spruit

    (Department of Information and Computing Sciences, Utrecht University, Princetonplein 5, 3584 CC Utrecht, The Netherlands)

Abstract

Operational Risk Management (ORM) comprises the continuous management of risks resulting from: human actions, internal processes, systems, and external events. With increasing requirements, complexity and a growing volume of risks, information systems provide benefits for integrating risk management activities and optimizing performance. Business Performance Management (BPM) technologies are believed to provide a solution for effective Operational Risk Management by offering several combined technologies including: work flow, data warehousing, (advanced) analytics, reporting and dashboards. BPM technologies can be integrated with an organization’s Planning & Control cycle and related to strategic objectives. This manuscript aims to show how ORM can benefit from BPM technologies via the development and practical validation of a new maturity model. The B4ORM maturity model was developed following the Design Science Research approach. The maturity model relates specific maturity levels of ORM processes with BPM technologies applicable for a specific maturity stage. There appears to be a strong relationship (0.78) with ORM process maturity and supporting BPM technologies. The B4ORM maturity model as described in this manuscript provides an ideal path of BPM technologies related to six distinctive stages of ORM, leading towards technologies suitable for continuous improvement of ORM processes and organization-wide integration.

Suggested Citation

  • Bram Pieket Weeserik & Marco Spruit, 2018. "Improving Operational Risk Management Using Business Performance Management Technologies," Sustainability, MDPI, vol. 10(3), pages 1-20, February.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:3:p:640-:d:133962
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    4. Ge-Qi Cui & Chang-Hyun Jin & Jung-Yong Lee, 2020. "How Risk Managers’ Psychological and Social Capital Promotes the Development of Risk-Management Capabilities," Sustainability, MDPI, vol. 12(11), pages 1-17, June.

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