Operational Risk Advisors LLC is an independent consultancy and executive coaching firm specializing in operational risk management, risk finance, and insurance. The firm assists corporate and financial institution clients worldwide in operational risk assessment, analysis and mitigation, in the design, development, enhancement and review of risk capital models, risk finance and insurance programs, and in complex insurance claims preparation. The firm also provides post-loss reconstruction management services, such as in the case of critical business document recovery.
Operational Risk Advisors was founded by Douglas G. Hoffman in 2000. In the 1990s, Mr. Hoffman and his teams poineered many practices that are currently applied in operational risk management. He led the Operational Risk and Insurance Management department at Bankers Trust, including risk finance and insurance management, operational risk assessment, measurement and management, and the firm's global business continuity planning function. During this time, he and his teams developed the first internal and external databases of operational incidents and losses - later re-named the First Database, and now owned and managed by Fitch Group. He and his teams also developed one of the first tracking systems for issues, incidents, losses, and one of the first Loss Distribution Approach (LDA) opeational risk capital models in the industry. Mr. Hoffman authored a book entitled Managing Operational Risk: 20 Firmwide Best Practice Strategies, which was published by John Wiley & Sons in January 2002, and is considered to be one of the authoritative reference sources for the discipline.
Among their current engagements, Mr. Hoffman and Operational Risk Advisors serve as facililator and secretariat for the Advanced Measurement Approaches Group (AMAG). The AMAG was formed in mid-2005 at the suggestion of the U.S. Inter-Agency Working Group on Operational Risk. The AMAG is open to any banking and/or financial institution regulated in the United States that is either mandated, opting in, or considering opting in to Basel II. A senior officer responsible for operational risk management represents each member institution on the AMAG. Of the twenty-two or so U.S. banking institutions that are currently viewed as mandatory or opt-in Basel II institutions by the U.S. regulatory agencies, fifteen are currenly members of the AMAG. The Risk Management Association (RMA) provides the secretariat and support team for the AMAG.
ORA maintains a network of consulting alliances and draws upon the resources of individual consultants and/or its stategic consulting partner firms in order to provide additional depth or speciality expertise, when appropriate.