Navigating Operational Risk: Developing Criteria for Operational Risk Management Maturity in the Wake of COVID-19

The COVID-19 pandemic has caused many organizations to suffer losses and even close due to being unprepared to manage the effects of such a deadly disease. This pandemic can be regarded as an external event that is an underlying risk factor for operational risk. Therefore, it is apparent that the losses and disruptions caused by COVID-19 can be directly linked to operational risk, meaning that any loss and damage can be attributed to a shortcoming in adequate operational risk control measures. Although many organizations were prepared in one way or another, it seemed uncertain at what level of risk maturity an organization would have adequate control measures in place for operational risk exposures. The research aimed to establish criteria for operational risk management maturity. The research followed a non-systematic literature review to evaluate various criteria within the framework of risk management. The literature review identified 30 criteria that can help organizations assess, develop, and benchmark their operational risk maturity. The concept of risk maturity can help organizations determine their level of risk resilience to cope with major operational risk events. Future research can be conducted to confirm the criteria and assess their applicability in various organizations.