An essential component of the operational risk framework is the ability to record internal loss events as they arise, to attribute them to the various categories of operational risk, and to track them to closure according to a workflow which matches the organization’s unique business processes.
From a regulatory viewpoint, a loss database is expected to be comprehensive and contain several years’ worth of data before it can be approved for use in the risk estimation process.
The systematic capture of clean and comprehensive data on losses is one of the single most important aims of an operational risk management solution, since the variety of management information that can subsequently be produced is very significant. Capturing losses is a prerequisite to measuring them, and thus to answering management questions such as ‘Which products produce the highest number of losses?’, ‘Which processes are most error-prone?’, ‘Where do the losses fail to match the expected risk profile?’
What the system can do for you
The Loss Event Manager module allows for the following:
- Tracking of losses and near misses.
- Add Loss categorisations, impact assessments, prioritisations and cause analysis.
- Underpinned by the workflow process for approval and tracking to closure.
- Access controlled secure system with respect to confidential loss data.
- Multiple currencies are supported, with automatic currency translation into local and group currency equivalents.