Prepare for your Operational Risk Manager interview. Understand the required skills and qualifications, anticipate the questions you may be asked, and study well-prepared answers using our sample responses.
The Sarbanes-Oxley Act is a federal law that regulates corporate accounting. It was passed in 2002 after several high-profile corporate scandals, and it requires public companies to maintain accurate financial records and provide accurate information to investors. The interviewer may ask this question to see if you have experience working in a corporate environment where the Sarbanes-Oxler Act was in effect.
Answer Example: "I am familiar with the Sarbanes-Oxley Act and have worked with companies to ensure they comply with its requirements. I also understand how to create effective risk management processes to mitigate any potential violations."
This question can help the interviewer understand your thought process and how you approach a project. Your answer should show that you are able to analyze data and use it to make decisions that are beneficial to an organization.
Answer Example: "I consider many factors when assessing operational risk, but there are a few that are especially important to me. First, I look at the company’s risk tolerance level. This helps me determine what types of risks we can take and which ones we should avoid. Next, I look at the likelihood of a given risk happening and its potential impact if it does occur. Finally, I evaluate the cost of implementing measures to reduce the risk."
This question can help interviewers understand how you apply your knowledge and experience to new situations. Use examples from past projects to explain how you would develop a risk management plan for a new business venture, including what steps you would take and what tools you would use.
Answer Example: "I would start by researching the company’s current operations, including its financial records and customer base. I would then create a list of potential risks based on this information and determine which ones are most likely to occur. From there, I would create a plan for addressing each risk and ensuring the company remains successful."
The interviewer may ask you this question to assess your knowledge of the different frameworks used to assess operational risk. This can help them determine whether you have the necessary experience to perform the job successfully. In your answer, try to explain which framework you’re most familiar with and why.
Answer Example: "I am familiar with both the Internal Control-Integrated Framework and the Control Objectives for Information Technology-Software (CobiT) model. I have used both of these frameworks in previous positions to assess operational risk within organizations. The Internal Control-Integrated Framework is a comprehensive approach to assessing internal controls, while the CobiT model focuses specifically on IT systems."
This question can help the interviewer determine your thought process and how you apply it to your work. Your answer should show that you understand what factors are most important when assessing operational risk and how they relate to businesses.
Answer Example: "I consider several factors when assessing operational risk, including the company’s size, its location and the types of products or services it offers. I also look at the company’s management structure, its compliance practices and its history with risk management. Finally, I examine the company’s current risk management strategies to see if they’re effective or if there are any areas for improvement."
Operational risk managers often need to negotiate with other members of their team or organization. Employers ask this question to make sure you have the skills necessary to successfully negotiate with others. In your answer, explain how you would use your negotiation skills in the workplace. Share an example of a time when you successfully negotiated with someone else.
Answer Example: "I would rate my negotiation skills as excellent. I have extensive experience in negotiating contracts and agreements with clients and vendors. In my last role, I was responsible for negotiating the terms of our vendor contracts. These contracts were worth millions of dollars, so I had to be very careful when negotiating the terms. However, I still managed to find ways to save the company money while still providing excellent service."
This question can help the interviewer understand your experience with implementing risk management plans and how you’ve helped companies implement them. Use examples from previous roles where you helped develop or implement risk management plans, including any challenges you faced and how you overcame them.
Answer Example: "In my current role as an operational risk manager, I am responsible for developing and implementing risk management plans for all aspects of the business. I work closely with other members of the team to ensure that we are addressing all potential risks and vulnerabilities in our systems and processes. In my previous role, I also developed and implemented risk management plans for different departments within the company."
The International Organization for Standardization (ISO) is a group that creates standards for many industries. The ISO 31000 standards for risk management are a set of guidelines for how organizations should manage their operational risks. Employers ask this question to see if you have experience using these standards in your work. If you have used the ISO 31000 standards before, share a time when you applied them to your job. If you haven’t, explain that you would be willing to learn them.
Answer Example: "Yes, I am very familiar with the ISO 31000 standards for risk management. I have been an operational risk manager for five years, and during that time, I have implemented these standards into my department’s daily operations. The ISO 31000 standards are a great resource for any organization looking to improve their risk management strategies. They provide clear guidelines on how to identify, assess, and manage risks in an efficient manner."
This question can help the interviewer understand your experience level and how it relates to the job you’re applying for. Use this opportunity to highlight any previous experience you have with operational risk management, including the types of organizations you worked with and what type of projects you completed.
Answer Example: "I’ve been working as an operational risk manager for five years now. During that time, I’ve had the opportunity to work with a variety of different companies and organizations, including financial institutions, retail stores and even government agencies. My most recent position was at a large bank where I managed all of the company’s operational risk management efforts. In this role, I was responsible for creating policies and procedures to ensure that the company stayed compliant with federal regulations."
This question can help the interviewer determine your priorities and how you approach your work. Your answer should show that you understand the importance of all aspects of operational risk management, but you can also highlight one or two areas that are especially important to you.
Answer Example: "I think the most important aspect of operational risk management is ensuring that there is a strong system in place to detect, assess and manage risks. This includes having an effective risk management plan, implementing processes to identify and assess risks, and providing training for employees on how to avoid common mistakes that lead to risks. It’s also important to have systems in place to track potential issues and monitor progress toward goals. Finally, it’s crucial to have a communication plan in place so that everyone is aware of risks and can work together to avoid them."
This question can help the interviewer assess your ability to apply your knowledge of operational risk management and assess a business initiative. Use examples from past experiences where you applied your skills to assess operational risk in a new business initiative or project.
Answer Example: "In my last role as an operational risk manager, I helped my company launch a new online shopping platform that allowed customers to purchase products from multiple vendors. We needed to ensure that the system was secure enough to protect customer information while also ensuring that vendors could easily upload their products and prices. To assess this, I conducted interviews with key stakeholders such as IT professionals, marketing managers and sales associates to get their perspectives on potential risks."
This question can help the interviewer understand your knowledge of the industry and how you might approach challenges. Your answer should include a specific example from your experience as an operational risk manager or from another role where you had to overcome a challenge.
Answer Example: "I think the biggest challenge faced by operational risk managers is finding ways to effectively communicate risk management strategies to different departments within an organization. It’s important that all employees understand how their actions affect the company’s overall risk profile, but it can be difficult to get everyone on board with the same message. In my last role, I helped create a series of videos that explained different types of risk and how to avoid them. We then posted these videos on our intranet so each department could watch them at their convenience. This strategy helped us reach all employees and ensure they had the same understanding of risk management."
The interviewer may ask this question to see if you have experience with two important pieces of legislation that relate to operational risk management. The Sarbanes-Oxley Act is a federal law that was passed in 2002 and aims to prevent corporate fraud. The Dodd-Frank Act is another federal law that was passed in 2010 and focuses on financial regulation. Both of these laws have implications for operational risk management, so it’s important to show that you are familiar with them.
Answer Example: "Yes, I am very familiar with both the Sarbanes-Oxley Act and the Dodd-Frank Act. I have been working as an operational risk manager for five years now, and I’ve been involved in several projects related to these laws. For example, I recently worked on a project where we needed to comply with the Sarbanes-Oxley Act by implementing an effective internal control system."
This question can help the interviewer determine your level of experience with operational risk management. Use examples from past projects to show how you identified and managed risks in a company’s operations.
Answer Example: "Yes, I am familiar with the types of risks that companies face. In my current role as an operational risk manager, I am responsible for identifying and managing all types of risks that may affect the organization’s operations. For example, I recently worked on a project where we needed to reduce the risk of employee fraud. We implemented new policies and procedures to reduce the likelihood of fraud occurring in the future."
This question can help the interviewer determine your knowledge of operational risk management and how you might apply it in their company. Use examples from your experience that show you understand what it takes to protect companies from risk and how you’ve done so in the past.
Answer Example: "As an operational risk manager, one of the most important things I can do to help protect a company is to create and maintain an effective risk management program. This includes developing and implementing policies and procedures for managing operational risks, monitoring risk levels and trends, and communicating with stakeholders about risks they may face. It’s also important to ensure that the organization has adequate controls in place to reduce risks and ensure compliance with regulatory requirements."
This question can help the interviewer determine your knowledge of operational risk management and how you apply it in real-world situations. Your answer should include a step-by-step process for determining risk levels, including any software or tools you might use to help you with this process.
Answer Example: "I would first assess the organization’s current risk profile by reviewing existing data such as past incidents, customer complaints and compliance violations. I would then compare this information with current policies and procedures to determine any gaps in coverage or areas of weakness. Next, I would create a risk map that outlines all potential threats and vulnerabilities within the organization. Finally, I would use this information to create a comprehensive risk management plan that outlines strategies for reducing risk and preventing incidents."
This question can help the interviewer understand your experience with implementing risk management plans and how you’ve helped companies improve their operational risk management. Use examples from previous roles to explain what you did, how long it took you to complete the project and any challenges you faced while doing so.
Answer Example: "In my last role as an operational risk manager, I was responsible for developing and implementing risk management plans for all aspects of the company’s operations. This included creating policies and procedures for managing financial, operational and IT risks. I also worked with management to create a risk assessment tool that allowed us to evaluate potential risks and determine which ones were most likely to occur. Finally, I monitored ongoing operations to ensure we were staying aware of potential risks and able to respond quickly if any occurred."
This question allows you to show the interviewer how you use your problem-solving skills and critical thinking ability to complete tasks. You can use examples from previous roles that highlight your ability to identify risks, analyze them and develop solutions to mitigate them.
Answer Example: "In my last role as an operational risk manager, I noticed that our company’s shipping department was experiencing an increase in lost packages. After investigating the issue, I discovered that the company had hired a new employee who wasn’t properly trained on how to pack shipments properly. To solve this issue, I implemented training for all employees on how to properly pack shipments."
This question can help interviewers understand how you would approach a challenging situation and use your communication skills to solve it. In your answer, try to show that you are willing to speak up when you notice something wrong and that you can work well with others to solve problems.
Answer Example: "If I were to identify a risk that could potentially lead to significant financial losses, I would first assess the severity of the situation and determine whether or not it warrants immediate attention. If so, I would then meet with my manager to discuss my findings and provide them with all of the relevant information needed to make an informed decision."
This question can help interviewers understand how you might handle a challenging situation. In your answer, try to show that you are willing to take initiative and collaborate with others to find solutions.
Answer Example: "If I noticed this, my first step would be to bring the departments together to discuss the issue. I would then work with them to create a plan for how we could work together to manage risk more effectively. This could involve creating a shared database where each department could input their own risk information so everyone has access to it."
