“It’s a relatively complex web”


“It’s a relatively complex web.”



  • Alex Toews, Director at Fusion Risk Management, discusses the evolving landscape of operational risk and its significance for financial resilience.
  • Toews emphasizes the interconnectedness of financial and non-financial risks in the current risk landscape.

Impact of Fee-Based Activities on Operational Risk:

  • Toews believes that recent re-lensing around fee-based activities as operational risks may not significantly change the working risk landscape.
  • Some concerns are related to increased oversight and checks and balances, which some companies fear could slow down processes and lower business efficiency.
  • Resilient organizations can adapt to regulatory changes and enhance oversight and control in fee-based activities.

Financial Institutions and Systemic Risks:

  • Certain institutions, often called “too big to fail,” play a crucial role in the global financial system.
  • The failure of such large institutions, as seen during the 2007-2008 financial crisis, has far-reaching and unsustainable impacts on the global economy.
  • Avoiding systemic failures requires focusing on operational risk management, including the ability to operate effectively.

Operational Risk and Cybersecurity:

  • Operational risk encompasses various factors, including the ability to transact, manage cash, and provide products and services to customers.
  • Cybersecurity is a critical operational risk component, with cyber threats being a top concern.
  • Emerging technologies like AI present new risks that must be addressed, making cybersecurity vigilance essential.

Understanding the Cohesion of Financial and Non-Financial Risks:

  • Effective risk management involves understanding various operational processes’ relationships, requirements, and dependencies.
  • Fusion Risk Management focuses on helping clients connect different risk domains and program areas to gain a cohesive understanding of pervasive risks.
  • De-risking operations requires a comprehensive understanding of how a business operates financially and operationally.


  • Financial resilience is closely tied to effective operational risk management in an evolving risk landscape.
  • Understanding the interconnectedness of financial and non-financial risks is essential for avoiding disruptions and ensuring business continuity.
  • Fusion Risk Management emphasizes the importance of comprehensively understanding how a business operates to enhance resilience and mitigate risks.

[Note: This summary captures critical points from the discussion with Alex Toews but does not cover the entire conversation.]


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