Operational risk is a fairly new concept when it comes to managing it as a separate risk type. However, the losses due to operational lapses are age old and existing ever since the business processes came into picture. In a typical organisation, excepting regulatory driven companies, it is upto the Board or Top management to decide whether a separate risk committee is required. Further more, such companies may or may not have a separate sub committee by the title “Operational Risk Management Committee” (ORMC). If companies do have such a committee, then it is evident that the company is serious about its risk management efforts. ORMC can offer great advantages in a risk management program. For one, such committee is tasked with the onus of preventing large losses that often are not known or unheard of. We discuss below some of the roles of the ORMC and how these roles help in effective risk management. Understand future changes and threats, and decide on areas of highest priority with respect to operational losses. This involves using the crystal ball and looking into the future and determine the types of loss and risk events that can become a reality. Then, once the probable events are identified, areas of concern or of high priority are identified and acted upon. Communicate to business areas the importance of operational risk management. Communicating with the line level personnel ensures that everyone understands that managing operational risk involves the whole organisation. When a person wrongly inputs a transactions, it can have significant impact across the Reporting, consolidation, decision making and maybe even recoveries. But the data operator might not realize that his simple input error cost the company crores in penalties, regulatory action or bad debts. To make that staff aware of the importance of his work ensures that operational losses are minimized. development and implementation of operational risk methodologies and tools, including assessments. ORMC is also responsible for designing the operational risk management framework. What is the team, who does what, how risks are identified, prioritized etc. To discuss and recommend suitable controls/mitigations for managing operational risk. Once operational risk events are identified, each one of them needs appropriate action plan. Example of this includes knowledge of possible losses due to damage to a new production plant due to riots. Although it is difficult to predict the likelihood of a riot damaging the plant or the amount of losses as a result of such riots, the committee will still like to take action on this knowledge. Insurance covers will be considered, strengthening security will be evaluated etc. In the end, the most appropriate risk response will be selected. To analyse frauds, potential losses, non compliance, breaches etc. and recommend corrective measures to prevent recurrences. Finally, ORMC is also tasked with reviewing fraudulent and potential fraud transactions.