Financial analysts are highly exposed to operational risk because they rely heavily on technology and data integrity.
How to Manage It: To reduce operational risk, analysts should employ strict data management practices. All information gathered should be frequently backed up, validated, and stored securely. Ongoing training is also essential on software tools and cybersecurity protocols. The existence of a system of checks and approvals can also help indicate mistakes or inaccuracies in the data before it enters crucial decisions. The adoption of automated risk management tools can improve oversight and control.