How Do You Measure Operational Risk In The Balanced Scorecard Approach?
According to the Strategy2Act website, “operational risk is defined as the risk of loss resulting from poor or failed internal processes, people and systems, or from external events.” Measuring operational risk requires the balanced scorecard approach, using software to ensure that it is applied strategically. Operational risk looks at a company’s operations department to find weaknesses that must be addressed. Obtaining the most effective software for your business may require a trial run in some cases. Identify the major areas of risk, such as legal risk, technology risk, human error and external factors. By measuring operational risk using the balanced scorecard approach, you will know the likelihood of encountering a disaster or other problems. Use a spreadsheet to organize each of the four categories of operational risk. Calculate the percentages by obtaining software to measure operational risk. For example, use the Balanced Scorecard Designer or the ITSM Metrics Modeling Tool to
