Operational Risk at a Crossroads: Reconnecting People, Data and Purpose

Drawing on decades of experience as a global risk leader and consultant, Elena Pykhova describes how operational risk has transformed since its early Basel II definitions. What began as a data-heavy, loss-driven discipline is now shaped by scenario analysis, key risk indicators and human collaboration. She emphasizes that the future of operational risk depends on integrating specialist areas - such as cyber, model and third-party risk - within a unified framework that connects expertise rather than isolates it.

Pykhova argues that the discipline is at a defining crossroads. If operational risk fails to remain the “connector” across the enterprise, the field risks fragmentation as sub-functions operate in silos. Her message is both a challenge and a call to action: risk professionals must strengthen communication, embrace collaboration, and combine data-driven intelligence with human judgment to navigate the next generation of interconnected threats.