17 Operational Risk Officer Interview Questions and Answers

Operational risk officers are responsible for identifying, assessing, and managing risks that could threaten an organization’s ability to meet its business objectives. Operational risk management is a relatively new field, and as such, there is no one-size-fits-all approach to the job.

Operational risk officers need to be able to think creatively and come up with new solutions to problems. They also need to be able to work well under pressure and handle multiple tasks simultaneously. If you’re interested in becoming an operational risk officer, you’ll need to be able to demonstrate these skills in an interview.

To help you prepare, we’ve compiled a list of sample operational risk officer interview questions and answers.

Are you familiar with the different types of operational risk?

The interviewer may ask this question to see if you have the necessary knowledge and experience to be an operational risk officer. Use your answer to highlight your understanding of operational risks by defining each type and explaining how they can affect a business.

Example: “There are three main types of operational risk, including credit risk, market risk and liquidity risk. Credit risk is when a company makes loans or extends credit to customers who don’t pay back their debts. Market risk refers to the financial loss that occurs due to changes in the value of assets or investments. Liquidity risk is when a company doesn’t have enough cash on hand to meet its obligations. I’ve worked with all three types of operational risk during my previous positions.”

What are some of the most important factors you consider when assessing operational risk?

This question can help the interviewer gain insight into your decision-making process and how you prioritize operational risk. Use examples from past experiences to highlight your critical thinking skills, ability to collaborate with others and attention to detail.

Example: “I believe that a company’s culture is one of the most important factors when assessing operational risk because it can affect everything from employee morale to customer satisfaction. In my last role, I noticed that our employees were often stressed out due to unrealistic expectations from management. This led me to assess operational risk in order to find ways to reduce stress among employees so they could provide better service to customers.”

How do you develop an operational risk management strategy for your organization?

An interviewer may ask this question to learn more about your approach to operational risk management. Your answer should include steps you take to develop a strategy and the factors that influence your decisions.

Example: “I start by analyzing my organization’s current operational risks, including financial, reputational and compliance risks. I then create an action plan for how we can reduce these risks over time. For example, when I worked at XYZ Bank, I started with a review of our existing policies and procedures to identify areas where we could improve our operational risk management. From there, I developed new strategies for reducing fraud, improving customer service and increasing efficiency.”

What is your experience with developing and implementing disaster recovery plans?

Disaster recovery plans are an important part of operational risk management. Employers ask this question to make sure you have the experience necessary to complete this task if it’s a responsibility in your role. Use your answer to explain what steps you take when developing and implementing disaster recovery plans. Explain that you will use your knowledge of industry standards, regulations and best practices to create these plans.

Example: “I’ve been involved with creating and implementing disaster recovery plans for my previous employers. I start by researching the company’s current state and identifying any risks or vulnerabilities. Then, I work with senior leadership to develop a plan that meets all regulatory requirements and complies with industry standards. After we agree on a plan, I implement it so that our organization is prepared for any emergencies.”

Provide an example of a time when you identified and resolved an operational risk for your organization.

This question allows the interviewer to assess your problem-solving skills and ability to identify operational risks. Use examples from previous roles that highlight your analytical, communication and interpersonal skills.

Example: “In my last role as an operational risk officer for a large financial institution, I noticed that our customer service representatives were having trouble resolving some of our customers’ issues over the phone. This was causing them to spend more time on the phone with customers than they should have been, which led to longer wait times for other customers who called in. I spoke with the customer service team about this issue and determined that we needed to hire more employees to handle the influx of calls. We hired five new employees, which helped reduce the amount of time it took to resolve customer issues.”

If you had to choose one area of operational risk management to focus on, what would it be?

This question is a way for the interviewer to assess your knowledge of operational risk management and determine if you have an understanding of what’s most important in this role. Your answer should show that you understand the importance of all aspects of operational risk management, but also highlight which area you would focus on first as an ORO.

Example: “I believe it’s essential to be knowledgeable about all areas of operational risk management because each one affects the others. However, I would start by focusing on financial risk management because it has the greatest impact on the organization. If we can reduce our financial risks, then we’ll see improvements in other areas like customer satisfaction.”

What would you do if you noticed a pattern of operational risks occurring within the same department or area of the company?

This question can help the interviewer determine how you handle operational risks and your ability to identify patterns. Use examples from past experiences where you noticed a pattern of operational risk occurring in one area or department, and how you handled it.

Example: “In my last role as an operational risk officer, I noticed that there was a pattern of operational risk occurring within the sales department. After investigating further, we found that the company’s software wasn’t properly calculating customer credit limits, which led to several instances of fraud. We worked with the IT team to update the system so this wouldn’t happen again.”

How well do you communicate with other members of the risk management team?

The operational risk officer is often the leader of a team that includes other members who specialize in different areas, such as compliance and fraud. The interviewer wants to know how you work with others to solve problems and make decisions. Use examples from your experience to show that you can communicate effectively and collaborate with others.

Example: “I believe communication is one of the most important skills for an operational risk officer because it allows me to share information with my team about new policies or procedures and get feedback on ideas I have for improving our processes. In my last role, I met regularly with my team to discuss current projects and challenges we were facing. This helped us develop solutions together and learn from each other’s expertise.”

Do you have experience working with data analytics tools to assess risk?

The interviewer may ask you this question to learn about your experience with data analytics tools and how you use them in your role. Use examples from your past work experience to explain the types of data analytics tools you’ve used and how they helped you complete your tasks.

Example: “In my last position, I worked with a variety of data analytics tools to assess risk within our organization. One tool I used was Tableau, which I used to create visual representations of complex data sets that allowed me to understand the risks we faced as an organization. Another tool I used was Microsoft Power BI, which I used to analyze large amounts of data to determine where we could improve our operational procedures.”

When performing risk assessments, what is your process for gathering information from all areas of the company?

The interviewer may ask you this question to understand how you gather information from different departments and evaluate the risk of a company’s operations. Use your answer to highlight your communication skills, ability to collaborate with others and attention to detail when gathering data for assessments.

Example: “I start by meeting with senior management to discuss their goals for the year and any changes they plan on making within the company. I also like to meet with department heads to learn more about their teams’ strengths and weaknesses. This helps me determine what areas of the company are most vulnerable to operational risks. For example, if one team is understaffed or overworked, it could lead to mistakes that increase the risk of fraud or theft.”

We want to become more sustainable as a company. What operational risks do we need to address to become more sustainable?

This question is a great way to show your knowledge of operational risk and how it can affect the company’s bottom line. When answering this question, make sure you highlight the importance of sustainability in business operations and explain how operational risks could impact that goal.

Example: “Sustainability is an important part of any organization because it helps companies reduce costs while also protecting their reputation. There are many operational risks associated with being sustainable, including supply chain disruptions, environmental disasters and employee injuries. To become more sustainable, I would recommend implementing a recycling program for all paper products, which will help reduce waste and save money on supplies.”

Describe your experience with performing risk assessments for mergers and acquisitions.

The interviewer may ask this question to learn more about your experience with performing risk assessments for large-scale projects. Use your answer to highlight your ability to perform thorough research and analyze data to determine the potential risks of a merger or acquisition.

Example: “In my previous role, I performed several risk assessments for mergers and acquisitions. One of my first assignments was to assess the financial risks of merging two companies that were in different industries. I researched each company’s revenue streams, expenses and assets to identify any areas where there could be overlap or conflict between the two organizations. After completing my assessment, I determined that the merger would not pose any significant risks to the organization.”

What makes you stand out from other candidates for this position?

Employers ask this question to learn more about your qualifications and how you can contribute to their company. Before your interview, make a list of the skills and experiences that qualify you for this role. Focus on what makes you unique from other candidates and highlight any transferable skills or certifications you have.

Example: “I am an experienced operational risk officer with five years of experience in financial services. I also hold my Certified Operational Risk Professional certification, which is one of the most highly recognized certifications in the industry. This shows that I am committed to upholding high standards of excellence in my work and continuously improving my knowledge and expertise.”

Which industries do you have the most experience in?

This question can help the interviewer determine if your experience aligns with their company’s industry. Use this opportunity to highlight any unique skills you have that may be beneficial for the role and how they relate to the position.

Example: “I’ve worked in both financial services and healthcare industries, which has given me a unique perspective on operational risk management. In my current role as an operational risk officer at ABC Financial Services, I helped develop new policies and procedures to reduce fraud risks within our customer service department. At XYZ Healthcare, I developed a system to monitor hospital equipment usage to ensure compliance with federal regulations.”

What do you think is the most important thing an operational risk officer can do to keep the company safe?

This question can help the interviewer understand your approach to operational risk management. Your answer should show that you have a strong understanding of what it takes to keep a company safe and how you would apply those principles in this role.

Example: “I think the most important thing an operational risk officer can do is create a culture of safety within their organization. I believe that if everyone understands the importance of keeping information secure, following protocol and avoiding risky behavior, they will be more likely to act safely on behalf of the company. To achieve this, I would make sure my team members are well-trained and supported so they feel comfortable asking questions or raising concerns.”

How often should you perform risk assessments?

Interviewers may ask this question to assess your knowledge of operational risk management. They want to know that you understand the importance of performing regular assessments and how often they should be done. In your answer, explain what factors influence when you perform an assessment and how often you do so.

Example: “I believe it’s important to perform a risk assessment at least once per year. However, I also consider other factors such as changes in company operations or financials, new regulations or business partners. For example, if we add a new vendor or client, I would likely perform a risk assessment within six months of their start date. If there are any major changes to our financial situation, I might also perform a risk assessment sooner than one year.”

There is a new risk every day. How do you stay up to date on the latest risks?

This question can help the interviewer understand how you stay current on industry trends and changes. Use your answer to highlight your ability to learn new things, develop relationships with other professionals and keep up with news in your field.

Example: “I have a few different ways I stay informed about operational risks. First, I subscribe to several risk management publications that provide insights into the latest developments in the industry. Second, I attend conferences and seminars where experts share their knowledge of emerging risks. Finally, I am always open to learning from my colleagues and mentors.”