Operational Risk Management Best Practices For 2026

Operational risk management is no longer just about control -it’s about enabling confident decision-making in uncertain environments.

In 2026, organisations that manage risk effectively are those that integrate it into how they operate, not just how they report. They move beyond static frameworks and adopt more dynamic, connected approaches.

The following best practices reflect how operational risk management is evolving -  particularly in organisations with complex operations and supply chains.

Embedding Risk Into Decision-Making

One of the biggest shifts in recent years is moving risk management out of silos and into everyday decisions.

Rather than being a separate activity, risk is increasingly embedded into:

• Operational planning

• Supplier selection and onboarding

• Change management processes

• Strategic decision-making

This ensures that risk is considered at the point decisions are made - not after the fact.

A well-designed operational risk framework supports this by providing consistent criteria, clear ownership, and accessible insights.

The goal is simple:
Make risk visible, understandable, and actionable for decision-makers.

Improving Third-Party Oversight

As supply chains expand, third-party risk has become one of the most significant drivers of operational risk.

Organisations are placing greater emphasis on strengthening supply chain and risk management through:

• Standardised supplier risk assessments

• Ongoing monitoring, not just onboarding checks

• Greater visibility beyond tier-one suppliers

• Clear accountability for third-party risk

This shift reflects a broader understanding that supplier risk is operational risk.

In practice, many organisations are moving toward more collaborative and standardised approaches. Industry communities, such as JOSCAR, support this by enabling consistent supplier assurance, reducing duplication, and improving visibility across shared supply chains.

This allows organisations to focus less on gathering data - and more on interpreting and acting on it.

Aligning Risk And Resilience

Another key trend is the closer alignment between operational risk management and resilience.

Traditionally, these have been treated as separate disciplines. In 2026, they are increasingly integrated.

This means:

• Using operational risk insights to inform resilience planning

• Focusing on critical services, not just individual risks

• Considering impact and recovery - not just likelihood

• Aligning frameworks, processes, and governance

By linking risk and resilience, organisations move from preventing disruption to managing it effectively.

This creates a more balanced, realistic approach - one that recognises disruption is inevitable, but manageable.

Leveraging Data And Technology

Data and technology are playing an increasingly important role in operational risk management.

Organisations are moving away from manual, fragmented processes and toward more integrated, data-driven approaches.

This includes:

• Centralised risk and supplier data

• Real-time monitoring of risk indicators

• Automated workflows for assessments and reporting

• Improved analytics to support decision-making

Just as importantly, these capabilities enable more frequent risk monitoring — shifting from periodic reviews to continuous visibility. This allows organisations to identify emerging risks earlier and respond before they escalate. 

This also supports greater consistency across the operational risk framework, particularly in large or complex organisations.

However, the goal is not technology for its own sake. It’s about improving visibility, reducing manual effort, and enabling faster, more informed responses to risk.

Strengthening Governance And Accountability

As operational risk becomes more central to business performance, organisations are placing greater emphasis on governance and accountability.

This includes:

• Clear ownership of risks and controls at every level

• Defined escalation and decision-making structures

• Stronger alignment between operational teams, risk functions, and leadership

• Consistent reporting that supports oversight and challenge

A mature operational risk framework ensures that responsibility is not ambiguous. Everyone understands their role in managing risk -from frontline teams to senior leadership.

Stronger governance also supports regulatory expectations, ensuring organisations can demonstrate not just that risks are identified, but that they are actively managed and overseen.

What Leading Organisations Are Doing Differently

The most effective organisations in 2026 share a common approach.

They:

• Integrate operational risk management into how the business runs

• Treat supply chain risk as a core part of operational risk

• Align risk management with resilience objectives

• Monitor risk more frequently, not just at set intervals

• Establish clear ownership and accountability across the organisation

• Use data to drive insight, not just reporting

• Collaborate across teams - and increasingly across supply chains

These organisations are not necessarily eliminating risk. They are managing it more effectively.

From Frameworks To Real Impact

Best practices in operational risk management are not about adding more process. They’re about making existing processes more effective, connected, and actionable.

When risk is embedded into decision-making, aligned with resilience, and supported by strong supply chain oversight, it becomes a strategic advantage - not just a control function.

In a world where disruption is constant, this ability to manage risk proactively is what enables organisations to operate with confidence and continuity.