Risk-aware organizational design
Operational risk is an important, complex, and difficult, criterion to consider during any form of organizational decision making. In practice (1) complexity typically arises from: the use of a variety of risk related indicators; the use of multiple heterogeneous measurement scales; measurement uncertainty; varying levels of measurement precision; and, the widespread effect of each measurement; (2) difficulties arise due to the: time bound nature of the decision making process; and, the availability and interpretation of risk-related measurements. To help address these issues, we propose a conceptual framework to support and minimize the level of analyst involvement during the management of operational risk specified in organizational models. This is achieved by propagating/analyzing risk-related evaluations across descriptions of distributed, inter-dependant and mission critical work activities.
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