Manage operational risk

This standard is about managing operational risk to support safe, consistent and reliable operations. You determine the information you need, gather and analyse evidence and apply procedures and controls to reduce and mitigate operational risk. You maintain accurate records, coordinate effective handovers and communicate in ways that promote inclusion and shared understanding. You 
monitor the working environment, respond to changes, escalate issues when required and support colleagues to understand their role in managing operational risk. You apply relevant leadership and management theories to strengthen operational risk management. 

This standard applies to managers and leaders at all levels across all sectors.

1. Determine, gather and analyse the information you need to assess operational risk within your area of responsibility to support informed decisions. 
2. Assess risks that may affect operations, services and projects to support safe and reliable delivery. 
3. Communicate and adapt your communication and behaviour in ways that uphold dignity, inclusion and colleagues’ participation when discussing operational risks and controls. 
4. Apply procedures and controls that support consistent, reliable operations and effective management of operational risk.
5. Maintain accurate records that support the documentation, monitoring and review of operational risk. 
6. Coordinate handovers that support continuity, safety and shared understanding across teams and shifts. 
7. Monitor the working environment to identify changes that may affect operational risk and take proportionate action. 
8. Develop actions that support the reduction and mitigation of operational risk to maintain safe and effective operations. 
9. Respond and escalate constructively to concerns raised by colleagues about operational risks in line with organisational procedures to maintain safety and trust. 
10. Monitor behaviours that may affect operational risk management and respond in line with organisational procedures to maintain a positive working environment. 
11. Provide information and guidance that supports colleagues to understand and manage operational risk effectively. 
12. Review and adapt procedures, controls and handovers in response to changing conditions and identified improvements to strengthen operational risk management. 
13. Apply relevant leadership and management theories to strengthen operational risk management and decision-making. 
14. Reflect critically on your performance and behaviour to identify improvements in how you manage operational risk.

1. The meaning and purpose of operational risk in your area of responsibility. 
2. The factors that influence operational risk and how operational risk management affects performance, engagement and organisational outcomes. 
3. How to determine, gather and analyse the information needed to assess operational risk. 
4. How to communicate in ways that support inclusion, dignity and shared understanding during operational risk discussions. 
5. How to adapt your communication and behaviour to support colleagues’ participation in operational risk management. 
6. The procedures and controls that support consistent, reliable operations and effective management of operational risk. 
7. How to maintain accurate records that support the documentation, monitoring and review of operational risk. 
8. How to coordinate handovers that support continuity, safety and shared understanding. 
9. How to monitor the working environment to identify changes that may affect operational risk and take proportionate action. 
10. How to develop actions that support the reduction and mitigation of operational risk. 
11. How to review and adapt procedures, controls and handovers in response to changing conditions and identified improvements. 
12. How changes in the working environment influence operational risk and when escalation is required. 
13. How to respond and escalate concerns about operational risks in line with organisational procedures. 
14. How to recognise behaviours that may affect operational risk management and how to respond in line with organisational procedures. 
15. How leadership and management theories and models can strengthen operational risk management, and how to reflect critically on your performance to identify opportunities for improvement.

The following values underpin this standard. They are integrated throughout the performance criteria and knowledge and understanding requirements and inform how individuals approach their work, make decisions and interact with others.

• Integrity - acting consistently with organisational values when managing operational risk.
• Responsibility - taking ownership of the procedures, controls and records you use.
• Openness - sharing information to support safe and effective operations.
• Inclusion - valuing diverse perspectives when identifying and managing risk.
• Respect - treating colleagues with dignity when discussing risk or handovers.
• Stewardship - using procedures and controls responsibly to protect people, resources and outcomes.

The following behaviours underpin this standard. They are integrated throughout the performance criteria and knowledge and understanding requirements and inform how individuals approach their work, make decisions and interact with others.

• Act with integrity, aligning operational risk management with organisational values.
• Be inclusive, valuing diverse perspectives in risk discussions.
• Act with respect, treating colleagues with dignity and supporting psychological safety.
• Communicate openly, supporting clarity and shared understanding.
• Encourage participation, enabling colleagues to contribute meaningfully to risk management.
• Take accountability for owning your role in managing operational risk.
• Consider wellbeing, recognising how operational risk processes affect colleagues’ workload, participation and safety.