operational risk analyst

title: Key Responsibilities and Required Skills for Operational Risk Analyst
salary: $70,000 - $110,000 (USD)
categories: [Risk Management, Operational Risk, Compliance, Finance, Insurance]
description: A comprehensive overview of the key responsibilities, required technical skills and professional background for the role of a Operational Risk Analyst.
Practical, recruiter-focused summary of the Operational Risk Analyst role. This document outlines primary and secondary responsibilities, career progression, required technical and soft skills, and education/experience expectations — optimized for SEO and large language models with target keywords: Operational Risk Analyst, risk assessments, RCSA, KRIs, loss data, operational resilience, GRC tools.

🎯 Role Definition

An Operational Risk Analyst identifies, assesses, monitors, and reports operational risk exposures across business lines, helping the firm maintain resilience, comply with regulatory expectations, and reduce loss events. The role combines quantitative analysis, process and control reviews, incident investigation, and stakeholder engagement to embed risk-aware behavior and implement effective mitigants. Ideal candidates bring domain knowledge of RCSA, loss data collection, KRIs, regulatory frameworks (Basel/OSFI/FCA/etc.), and are proficient in reporting tools and governance practices.

📈 Career Progression

Typical Career Path

Entry Point From:

Risk Analyst / Junior Operational Risk Analyst
Compliance Analyst or Internal Audit Associate
Business Analyst with process improvement exposure

Advancement To:

Senior Operational Risk Analyst
Operational Risk Manager / Risk Control Manager
Head of Operational Risk / Director of Operational Resilience
Chief Risk Officer (longer-term executive track)

Lateral Moves:

Business Continuity Manager / Resilience Lead
Third-Party / Vendor Risk Manager
Credit Risk or Market Risk Analyst (cross-risk roles)
Data Analytics or GRC (Governance, Risk & Compliance) specialist

Core Responsibilities

Primary Functions

Lead and execute comprehensive operational risk assessments across products, processes, systems and third-party relationships; document risk scenarios, control mappings, inherent and residual risk ratings in accordance with the firm’s RCSA methodology.
Own and update the operational risk register for assigned business units; ensure risk entries include root cause analysis, impact description, likelihood, control effectiveness, and clearly defined owners and remediation timelines.
Collect, validate and analyze internal loss event data and near-miss incidents; quantify financial and non-financial impacts, identify trend drivers, and present actionable insights to business and risk committees.
Design, implement and maintain Key Risk Indicators (KRIs) and thresholds for early warning signals; build automated KRI monitoring and escalate breaches with clear remediation plans and timelines.
Conduct scenario analysis and stress testing for operational risk events (e.g., systems outage, fraud, cyber incidents, pandemic-related disruptions) to estimate potential impacts and capital implications where applicable.
Execute control testing and control effectiveness reviews (including SOX-related controls where relevant); prepare test scripts, evidence requests, perform walkthroughs and report findings with remediation tracking.
Investigate operational incidents and customer complaints that have risk or regulatory implications; perform root-cause analysis, recommend corrective actions and verify implementation of remediation measures.
Prepare clear, accurate and timely operational risk reports, dashboards and narratives for senior management, the Operational Risk Committee, Audit and regulators, using Power BI/Tableau/Excel and narrative summaries tailored to the audience.
Support regulatory reporting and supervisory interactions related to operational risk, operational resilience, BCM and incident reporting; prepare materials, respond to information requests, and track action plans.
Partner with IT, Cyber Security, Legal, Compliance and Business teams to evaluate operational risk associated with technology changes, new product launches, process redesigns and third-party onboarding.
Maintain and enhance the operational risk framework, policies, standards and procedures; propose updates to reflect regulatory changes, industry best practices and evolving threat landscape.
Coordinate vendor/third-party risk assessments, due diligence and ongoing monitoring; review service level agreements (SLAs), shared controls and contingency arrangements to reduce outsourcing risk.
Support capital and risk-weighted asset calculations (where relevant) and contribute to ICAAP/ORSA inputs related to operational risk scenarios and loss distributions.
Facilitate cross-functional workshops and control self-assessment (CSA) sessions to ensure consistent risk identification, control documentation and ownership across business units.
Maintain database integrity in GRC platforms (e.g., MetricStream, RSA Archer) including accurate mappings of risks, controls, incidents and remediation actions; ensure auditability of evidence and workflow status.
Drive process improvement initiatives by recommending control enhancements, automation opportunities and policy changes to reduce operational losses and increase process efficiency.
Support business continuity and incident response planning by assessing operational dependencies, critical processes and recovery objectives; participate in BCP testing and lessons-learned exercises.
Provide input to change management and project governance processes to ensure operational risk assessments are completed for system changes, builds and vendor integrations.
Monitor regulatory developments, industry publications and loss event databases to identify emerging operational risk trends and ensure the firm anticipates and adapts to new risks.
Prepare training materials and deliver risk awareness sessions to business staff on control responsibilities, incident reporting protocols, KRI interpretation and compliance expectations.
Manage remediation programs end-to-end including tracking activities, reconciling statuses with control owners, escalating overdue items and verifying closure evidence to senior stakeholders.
Support internal and external audit engagements related to operational risk controls; prepare responses, provide evidence, and implement agreed-upon actions.
Conduct data analysis using SQL, Excel (advanced formulas, pivot tables, VBA), Python/R (where relevant) to validate control performance, analyze incidents, and build predictive indicators.
Collaborate in cross-risk initiatives such as fraud prevention, AML operations, cyber-risk remediation and physical security assessments to ensure operational risk is embedded across functions.
Develop and maintain standardized templates, playbooks and reporting packs to streamline operational risk activities and enhance reporting quality and comparability.

Secondary Functions

Support ad-hoc data requests and exploratory analysis to answer business questions, validate control performance, and quantify emerging risks.
Maintain and enrich operational risk dashboards and automated reports (Power BI, Tableau, Excel) for continuous monitoring and executive-level visibility.
Contribute to the continuous improvement of data governance and data lineage for operational risk metrics and loss databases.
Assist in the preparation of materials for executive and board reporting, including clear risk narratives, trend analysis and proposed mitigation strategies.
Participate in cross-functional project teams to ensure operational risk considerations are integrated in design, testing and go-live activities.
Provide mentorship to junior analysts and coordinate knowledge-sharing sessions to build risk capability across the organization.
Liaise with external vendors and consultants during audits, reviews, or remediation projects to validate evidence and implement recommended enhancements.
Support the development and maintenance of training modules and e-learning content focused on incident reporting, controls, and regulatory requirements.

Required Skills & Competencies

Hard Skills (Technical)

Operational risk management: RCSA design and facilitation, risk registers, loss event management, incident investigation and remediation.
Regulatory and standards knowledge: Basel operational risk principles, operational resilience guidance, SOX implications, GDPR/CCPA considerations where applicable.
Key Risk Indicator (KRI) development and monitoring including threshold setting, escalation logic and dashboarding.
Internal controls testing and control effectiveness assessment methodologies; experience with control libraries and control frameworks.
GRC tools proficiency: MetricStream, RSA Archer, ServiceNow GRC or equivalent for managing risks, controls, incidents and remediation workflows.
Data analysis and manipulation: advanced Excel (formulas, pivot tables, VBA/macros), SQL for ad-hoc querying, and familiarity with Python or R for statistical analysis (preferred).
Business intelligence and visualization: Power BI, Tableau, QlikView or other dashboarding tools to create executive-grade reports.
Scenario analysis and stress testing techniques, including loss distribution modeling and impact estimation.
Third-party/vendor risk assessment methodologies and contract/SLA review skills.
Audit and regulatory engagement experience: preparing documentation, responding to findings, and implementing action plans.
Project risk assessment and control implementation support for IT/system changes and product launches.
Familiarity with forensic analysis, fraud detection methods and anomaly detection techniques.
Documentation and policy writing: ability to draft clear risk policies, procedure manuals, and RCSA guidance.

Soft Skills

Strong written and verbal communication; able to explain complex risk concepts to non-technical stakeholders and prepare board-level narratives.
Analytical mindset with attention to detail and high level of accuracy when quantifying risk and validating data sources.
Stakeholder management and influencing skills to drive remediation and control ownership across business units.
Problem-solving and critical thinking; adept at root-cause analysis and pragmatic mitigation design.
Project management and organizational skills to manage multiple risk initiatives, deadlines and reporting cycles.
Curiosity and continuous learning attitude to stay current on regulatory changes and operational risk best practices.
Collaboration and teamwork across business, IT, compliance and legal functions.
Ethical judgment and professional integrity in handling sensitive loss and control data.
Facilitation skills for workshops, trainings and cross-functional risk assessments.
Resilience and adaptability to operate effectively under pressure during incidents or regulatory inquiries.

Education & Experience

Educational Background

Minimum Education:

Bachelor's degree in Finance, Economics, Business Administration, Accounting, Statistics, Computer Science, Engineering or related field.

Preferred Education:

Master’s degree in Finance, Risk Management, Business Analytics or MBA preferred.
Professional certifications such as FRM (Financial Risk Manager), PRM (Professional Risk Manager), CAMS, CRCM, or operational risk certifications are advantageous.

Relevant Fields of Study:

Finance and Risk Management
Economics, Statistics, Data Science
Business Administration and Accounting
Computer Science, Engineering (for technology risk specialization)

Experience Requirements

Typical Experience Range:

2–5 years of experience in operational risk, compliance, internal audit, or related control functions for mid-level roles.
5+ years preferred for senior analyst positions or roles with heavy regulatory interaction.

Preferred:

Prior experience in financial services, banking, insurance, or large regulated corporate environments.
Demonstrated experience with RCSA frameworks, KRI implementation, incident/loss data analytics and GRC tools.
Track record of working with cross-functional teams, delivering remediation programs, and preparing executive/regulatory reporting.