Risk Management Solutions | Operational Risk Management

Operational Risk Management

Operational Risk Management (ORM) is defined as the management of loss resulting from inadequate or failed processes, people, and systems or from external events.

Changes in the regulatory and control environment within the financial industry, including Basel II and Sarbanes-Oxley, are focused on moving the assessment and management of risk from the center of the institution out to the operating units and teams in the front line of business.

Risk managers ensure the creation and enforcement of a risk management framework. The challenge is the rapidly changing environments they manage and the constant drive from the business to be relevant and efficient. The frameworks they develop and manage must be both; up to industry standard and coordinated with the compliance and audit frameworks. A further challenge is to ensure that the frameworks for all risk types and across all business units are coordinated.

Operational Risk Module of ARC Logics

• Automates a very labor intensive review and assessment process for operational risk
• Provides the ability to assign risk management responsibility and accountability within the business.
• Ensures a cost-effective continuous assessment of risks
• Allows the business to capture and report on losses, breaches and control failures
• Provides an ability to aggregate risks up the organization to ensure that risk scores at the high levels are made up of real scores from below
• Provides an organization wide issue management system that ensures all issues are captured and managed to closure
• Includes an indicators management system that enables organizations to track and report upon risk and control indicators
• Enables high quality enterprise reporting

Key features and functions include:

• Risk and Control Assessment (RCA)
• Incident Recording
• Scenarios
• Enterprise Indicators
• Enterprise Reporting

The Operational Risk Module resides on the ARC Logics platform with the Compliance Risk Module and seamless integrates with CCH Teammate for more expansive audit capabilities.