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 pioneered 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. They also developed one of the first on line tracking systems for issues, incidents, losses, as well as one of the first operational risk capital models in the industry. The capital model was a hybrid model that included a core loss distribution approach, which was enhanced with risk management and control incentives. 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 facilitator and secretariat for the Advanced Operational Risk Group (AORG), formerly the Advanced Measurement Approaches Group (AMAG). The Group was formed in 2005 by the Risk Management Association (RMA) at the suggestion of senior U.S. regulators. The RMA is a member-driven professional association whose purpose is to advance the use of sound risk management principles in the financial services industry. AORG’s mission is to conduct regular practice-sharing exercises among members, and pursue an ongoing industry-regulatory dialogue toward the advancement of operational risk management. In fulfilling its mission, AORG sponsors a series of working groups, periodic range-of-practice surveys, and roundtable discussions. AORG consists of operational risk management professionals working at financial service organizations operating in the United States. Institutional membership in the AORG is by arrangement with RMA, and is open to any financial firm regulated in the U.S. that is pursuing advanced op risk measurement and management practices, and/or is required to conduct CCAR / DFAST exercises. A senior officer responsible for op risk management serves as the primary representative of each member institution on the AORG. There are currently twenty-seven (27) institutional members.
ORA maintains a network of consulting alliances and draws upon the resources of individual consultants and/or its strategic consulting partner firms in order to provide additional depth or specialty expertise, when appropriate.