From Compliance to Improved Business Performance Through Operational Risk Management

(12/01/2009)

A successful operational risk management (ORM) strategy can help organizations meet the challenges posed by emerging technologies by providing a framework for managers to consider how risk exposures are changing, determine the amount of risk they are willing to accept and ensure they have the appropriate risk mitigants in place to limit risk to targeted levels.

A new report highlights key trends and operational risk investment priorities within financial markets around the world

Scope
• Discussion of the impact of the sub prime crisis on operational risk management practices and solutions.
• Looks at the rate of technological change that is being driven by regulatory compliance measures

Reasons to Purchase
• This research will enable to you to understand changes in IT budgets and how they could impact your customers
• This research will enable you to understand how evolving business pains will result in demand for specific solutions

Table of Contents:

Market opportunity
• Basel II is driving a more quantitative approach to operational risk
- Operational risk has broadened its scope
- OpRisk compliance initially had focused primarily on the capital calculation side
• After the crisis 'risk will be king' with the onus on demonstrating operational stability
- Banks now have an opportunity to get their risk management right
- The regulatory response will focus on reporting and active involvement in day-to-day risk management
- There will be a shift from a reactive loss-minimization approach to a more proactive strategic role
- Purely regulatory-driven OpRisk spend is giving way to the pull of business performance improvements
• Operational risk is now seen as a framework by which all risks can be managed
- Greater interaction between risk disciplines will shape resulting firms internal structures
• A strategic approach to risk will require greater levels of collaboration between risk, operations, and IT
• Large scale integration of disparate organizations will hasten the merging of risk disciplines

Customer Impact
• Performance benefits are best unlocked by placing operational risk at the heart of strategy
• Internal structures and cultures must change to place risk at the heart of all processes
- Enhanced customer service can also be achieved through focusing on risks in operational processes
• The application of IT solutions to the field of OpRisk are growing in scope
- Fraud and content management key concerns of risk decision makers
- Automation can reduce process based OpRisks, however, it can give rise to new IT based risks
• Flexibility and transparency are the key features of operational risk solutions
• The field of OpRisk is a complex vendor landscape

Go to Market
• Top requirements for GRC solutions will be transparency and auditability
- Risk management vendors will have to demonstrate the transparency and auditability of their solutions
- In light of regulatory responses vendors flexibility in solutions will be key
- Vendors demonstrating how their solutions can meet tomorrow's reporting needs will gain advantage
• Users will look for a standardized core of modules that can be extended incrementally
- Vendors that are able to integrate risk frameworks with operational and finance areas will be well placed
-Successful vendors will be those that can assist data consolidation and integration of risk regimes
- Vendors must show that the increase in security through automation does not come at the cost of flexibility
• Vendor go-to-market strategies
- Quick wins will be sought combined with the ability to evolve the solution
-KRIs and data resulting from processes must align with modeling tools
-Risk vendors should target operations as the ORM and operations functions become more aligned

Buy this new report: 'From Compliance to Improved Business Performance Through Operational Risk Management'.

Related topics:  Security management and policies 

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