Operational Risk Management

Regulators, standards bodies, good management practice, and recent economic history all suggest that enterprises need to identify, understand, evaluate, prioritize, and mitigate/control the risks they face in their business operations.  But risk management is complex and involves organizations, people, systems and business processes across the enterprise. With hundreds of moving parts involved, how can the enterprise pull all the pieces together in a coherent picture, divide up responsibility, plan mitigations and track status, and respond to exceptions? To make matters more complicated, when business operations are outsourced, the enterprise retains responsibility for all its risks but must look to its service providers for day-to-day risk control. How can the enterprise tell if its service providers are part of the problem or part of the solution?

ProcessUnity provides solutions that let you inventory, evaluate, and prioritize risks; associate risks with relevant business processes, systems, and organizations; assign risk owners and automatically notify them of exception conditions or impending deadlines; plan mitigations and track the overall progress of the risk management program. Since risk management actions often require implementation of controls, the Operational Risk Management suite is fully integrated with our Compliance Management suite.

Loss Event Capture and Reporting

Loss event tracking is a key component of operational risk management. Analysis of loss events can identify areas of risk that require control enhancement. Loss event reporting is also being used to increase transparency for financial services firms and their institutional clients. With sufficient loss event history, the Basel II Accord allows companies to take advantage of the Advanced Measurement Approach (AMA) for calculating required capital for operational risk. ProcessUnity's Loss Event Capture and Reporting solution includes the ability to: 

• Record and review losses (or gains)
• Categorize loss events by Basel II (or custom) event types and business lines
• Link loss events to specific processes, risks and controls
• Report on trends, frequency and severity
• Provide loss event data for capital modeling  

Key Risk Indicator Management

Key Risk Indicators (KRIs) are an early warning system designed to identify changes to the operational risk profile and to anticipate potential problems before they occur. ProcessUnity's KRI measurements may be scheduled for any frequency. Escalation and threshold levels may be defined for each KRI to trigger notifications as well as to provide red/yellow/green reporting and dashboards. KRIs may be linked to specific processes, risks and controls and also to Basel II event types and business lines.