You need to stay on top of your operational risks, the risks of loss resulting from inadequate internal processes, misbehavior of people, failed systems or from external events. This is underlined by recent incidents that have shown that unlikely events do happen, causing serious damage to organizations across sectors who are not well prepared.
Within the banking industry, the rules of Basel II require that operational risks be systematically measured according to three different approaches, with increasing requirements on data collection, modeling and risk measurement. A more advanced approach (like AMA) will not only grant a capital relief but also help to better manage these risks and, thus, reduce the impact of defaults.
How BearingPoint brings value
We have developed an operational risk management framework that enables the systematic identification, measurement and control of operational risk. The different methods are integrated in this framework. The operational risk management methods represent a self-contained and self-repeating process with the following phases:
We can help you set up an operational risk management framework, developing or enhancing operational risk management methods and integrating them into your processes.