Solutions

Operational Risk Management (ORM)

BWise has been internationally recognized as having the best operational risk and GRC product. This is an enormous accolade as operational risks are arguably one of the most diverse and complex risks there are. Broadly defined, they encompass everything that isn’t market and credit risk. If we examine operational risk more closely, they associate with people, processes, systems, and external events. Moreover, the effects of these risks are pervasive and dealt with not only by the business, but by functions, like compliance, legal, information technology, vendor management, risk management, human resources, and audit. Given the breadth of operational risk, it’s tantamount to have a unifying framework, practices, and enabling tools that can be readily understood, used, and sustained across the organization.  

MANAGING OPERATIONAL RISK

It can be challenging to understand and manage the various operational risks facing an organization. The array of threats and opportunities can be daunting – conforming to laws and regulations, new product and service creation, strategic opportunities, thwarting cyber exposures, managing information security, operating efficiently, keeping high performing employees, … the list goes on. The difficulty is the centralization and codification of this often disparate data.

THE BWISE OPERATIONal RISK MANAGEMENT SOLUTION

The BWise operational risk management solution can facilitate and sustain an organization’s operational risk management practices. For example:

  • It can support the risk identification and assessment process by offering multi-layers of risk and control libraries helping to define risks and controls to a level of specificity that is broadly understood, correlated to operational activities, and meaningful to monitor
  • Issues and actions can be created, put into workflow, automatically and electronically distributed, and tracked to resolution
  • Bespoke dashboards can be specific to functional or business roles enabling transparency into specific operational risks
  • Capture, mine, and analyze losses and incidents
  • KPI’s and KRI’s can be created, monitored, and altered as the risk environment changes
  • Reports can be created and generated for periodic or ad-hoc reporting to articulate the operational risk profile for executives, regulators, or other stakeholders (e.g., audit)
  • Heat maps can be tailored to reflect both positive and negative impacts based on the methodological severity tranches and risk appetite/tolerance levels
  • External vendor feeds, such as loss data from ORX (Operational Riskdata eXchange), can be automatically fed into the solution
  • Analytics (e.g., for fraud) can be applied to evaluate risk 
  • Capital can be determined through modeling

BENEFITS USING BWISE FOR OPERATIONAL RISK MANAGEMENT

The solution enables and empowers an organization to support the management of operational risk through the operationalization of the process. This provides consistency in approach, clarity into the risk and control environment, assures unwanted exposures are actively monitored and managed, opportunities are realized, and that the program is being sustained.

The solution not only houses operational risk data, but makes mining and depicting the data easy, relevant, and expedient. This fosters better decision making reducing the likelihood of adverse consequences such as financial losses, penalties, non-conformance, or reputational damage. Reporting can provide insight and the necessary details to the operational risk profile, how it’s changing, and the underlying drivers. Executives, regulators, and other stakeholders will be able to validate the efficacy of operational risk management activities, gain confidence that risks are being adequately addressed, and have greater confidence in capital and resource allocation decisions.

BWise Loss & Incident Database enables the organization to collect its losses and incidents. This includes qualitative and quantitative data such as causes, consequences, and timing. The storage, mining, and analysis of this data provides management insight into risk events and their financial and non-financial impact including insight into the control environment. BWise Loss & Incident Database especially assists in with certain loss data compliance requirements such as Basel or Solvency II.

Contact us directly for more information about our Operational Risk Management software solution.  

BWise for Risk Management

OpRisk for Banking

Download the brochure Operational Risk Management for Banking: Your Financial and Reputational Risks in Control. 


GRC Journey Web TV

Watch the video: Understanding your Company's Risk Profile.


Operational Risk and Capital Modeling

Read the use case about Operational Risk and Capital Modeling.


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