Operational Risk - OREX
Making sure insightful operational risk quantification is simple and effective
The Challenge
The banking and investment management industry needs to understand their operational risk profile to meet regulatory expectations, but this can be challenging given the demanding requirements of maintaining a strong operational risk management framework. This operational risk solution allows organisations to understand and control these risks whilst focusing their energy on what matters most.
This solution implements a scenario-based loss distribution approach (LDA) model to combine loss data and business knowledge using the "as-simple-as-possible" modelling principle, via a secure, easy to use interface. This operational risk solution is ready to be implemented directly into your existing capital quantification and ICAAP/ICARA architecture.
Features
Fast, efficient, and reliable calculation engine
Transparent calculation methodology
Centralised platform to have full visibility and breakdown of your impairment figures
Flexibility which gives you full control in governing your bottom-line impairment figure
Fully secured web-hosted service
Streamlined model execution and reporting processes for a quick turnaround time
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How it works
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Input risk profile
Users are able to quickly and easily upload scenario and correlation data, based on their assessments of firm-specific operational risks. Users also have the ability at this stage to choose tailored model run parameters, from the number of simulations to run to the model’s confidence level.
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Run the model
This is the time-saver. Based on approaches commonly applied within the industry and aligned with regulatory expectations, our model quantifies operational risk capital while allowing your risk analysts to focus on understanding and managing the underlying risks; where value is really added.
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Analyse results
The model outputs results for the user to analyse either in the tool via the powerful charting capabilities, or by downloading the information to excel to create bespoke analytics.4Perform supporting analytics
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Perform support analytics
Quickly understand why operational risk capital has changed from the last period, test the sensitivity of the operational risk capital figure to changes in its inputs, and confirm the correct number of simulations to use, using our powerful supporting analytics functions.
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