Op'Watch
Ø Helps you to meet qualitative and quantitative standards for Basel II advanced measurement approach ;Ø Provides infrastructure to create loss database with flexible workflow, captures actual, potential losses apart from near misses and non-monetary losses;Ø Captures events, causation category, impact at business unit, location and institution level ;Ø Designed to create interfaces with external loss databases like ORX to use external and internal data for scenario analysis;Ø Handles risk monitoring both through risk indicators and risk self-assessment ;Ø Calculates economic and regulatory risk capital and also supports basic Indicator and standardized approach;Ø Advanced risk tracking module captures action plans, tracks and assign and also escalates and schedule actions;Ø Qualitative adjustment in economic capital based on risk monitoring and tracking
Supported Technologies
Linux,
Windows XP/2000/NT
Software
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Pricing
- Unspecified -
Additional Product Information
Introduction
In the 1990s, when profits came easily and the economy boomed, business risk assessment was largely displaced by strategies to bring in money. The 21st century begins with a struggling economy and tighter regulations, and risk management is becoming an obsession.
Chief financial officers manage market and credit risks, minimizing the variability of return and loss exposure for cash or other assets. But operational risk, arising from the uncertainty of daily tactical business activities, also exposes the organization to potential monetary loss. Operational risk is not easily identified or quantified. It depends heavily on internal processes and controls, the traditional purview of internal auditors. It is essential to understand those internal processes and identify risk-drivers.
Developing a companywide view of operational risk is complicated. Risks are embedded in lines of business and at various operations and support functions. An integrated approach to operational risk is necessary—to identify, monitor and measure risks and risk dependencies, to evaluate risk-control processes and to allocate capital.
Operational risk must be reduced to its basic elements so the causes, frequency and impact of losses can be identified precisely. Risk must be measured and managed on an integrated basis across the enterprise. Proactive risk management can create opportunities for growth and profit.
Key Elements of a Basel II AMA
§ Internal Data
§ External Data
§ Scenario Analysis
§ Internal Control and Business Environment
§ Insurance / Mitigation Techniques
o Flexible, framework that builds on banks’ internal methodologies and allows for evolution of practice over time
o Qualitative and quantitative supervisory criteria
o Key elements can be combined in different ways to quantify the bank’s OpRisk exposure
o Rely on supervisory validation and benchmarking across institutions