Assessing risk quickly with single, centralized operational risk view

Kuwait Finance House (Malaysia) Berhad’s Risk Management Division chose SAS® OpRisk Management to gain a single, centralized way to identify, monitor and analyze operational risk. Using alerts and a reporting dashboard, the bank now can assess risk more quickly and take mitigating actions.

The first foreign bank granted a license under Malaysia's Islamic Banking Act of 1983, KFH Malaysia was established on the heels of Bank Negara Malaysia's decision to open the country's Islamic banking industry to qualified foreign players. As the regional headquarters of KFH in the Asia-Pacific region, KFH Malaysia's main role is to provide innovative Shariah-based financial solutions to its customers.

The system is easy to use and its implementation has reduced paperwork significantly.

Ken Yon
Acting Chief Risk Officer

Risk management more than compliance

At the fast-growing Islamic bank, managing risk proactively is not just a matter of compliance – it is a necessary foundation for growth. KFH Malaysia's Risk Management Division implements and maintains the bank's risk-related strategy and independent control processes. It monitors the relevant risk exposures and issues against agreed limits and responds accordingly.

Before implementing SAS®, the bank managed operational risk data manually via Excel spreadsheets, Word documents and hard copies. The manual environment made it difficult and tedious to analyze operational risk and trends at a granular level. Moreover, it was time-consuming and required more manpower to analyze the data and prepare operational risk reports timely.

Ken Yon, Acting Chief Risk Officer, says the key features of SAS OpRisk Management that make a difference at KFH include:

  • Rich visualization – Heat maps, scorecards, incident trends and other interactive reports.
  • Automation – Flexible validation workflow and email alerts make it easier to monitor trends and take proactive measures.
  • Centralized risk library – Linking all related operational risk data makes it easier to visualize how the elements connect.

Mitigating operational risk

Ken Yon says the chief benefit comes from improved effectiveness in mitigating operational risk. The bank created a one-stop center where users submit operational risk data online for the Operational Risk Management team to review, analyze and monitor.

Kuwait Finance House

Challenge

Manual data analyses and lack of centralized risk data.

Solution

SAS® OpRisk Management

Benefits

Greater efficiency, faster response times and consolidated view of all operational risks and compliance information allow for more accurate and improved risk-management performance.

The results illustrated in this article are specific to the particular situations, business models, data input, and computing environments described herein. Each SAS customer’s experience is unique based on business and technical variables and all statements must be considered non-typical. Actual savings, results, and performance characteristics will vary depending on individual customer configurations and conditions. SAS does not guarantee or represent that every customer will achieve similar results. The only warranties for SAS products and services are those that are set forth in the express warranty statements in the written agreement for such products and services. Nothing herein should be construed as constituting an additional warranty. Customers have shared their successes with SAS as part of an agreed-upon contractual exchange or project success summarization following a successful implementation of SAS software. Brand and product names are trademarks of their respective companies.

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