How global practices influence national practices

Full Answer Section In addition to these factors, the globalization of business is also having an impact on national practices in operational risk management. As businesses become more globalized, they are exposed to a wider range of operational risks. This means that they need to have strong operational risk management practices in place in order to protect themselves from these risks. Here are some specific examples of how global practices have influenced national practices in operational risk management:

• The United States: The United States has been a leader in the development of operational risk management practices. The Sarbanes-Oxley Act of 2002, for example, requires public companies to have strong internal controls in place to mitigate operational risks. These requirements have helped to raise the bar for operational risk management practices in the United States and around the world.
• The European Union: The European Union has also been active in promoting the adoption of good operational risk management practices. The Basel Committee on Banking Supervision, which is based in the European Union, has developed a set of international standards for operational risk management. These standards have been adopted by many banks and other financial institutions around the world.

Overall, global practices are having a significant impact on national practices in operational risk management. This is due to a number of factors, including the sharing of best practices, the development of international standards, and the pressure from regulators. As the world becomes increasingly interconnected, the need for strong operational risk management practices will only become more important.

Sample Answer here are some ways that global practices influence national practices in operational risk management:

• The sharing of best practices: Global organizations often share their best practices in operational risk management with national organizations. This can help to improve the overall level of operational risk management in countries around the world.
• The development of international standards: There are a number of international standards for operational risk management, such as the ISO 31000 standard. These standards can help to guide national organizations in their efforts to improve their operational risk management practices.
• The pressure from regulators: Regulators in many countries are increasingly demanding that organizations have strong operational risk management practices. This pressure can help to drive improvements in operational risk management practices at the national level.