COPE WITH OPERATIONAL RISK ISSUES USING SAS OPRISK VAR 3.2
Master "Methods for Management of Complex Systems" (2006, dicembre)
Alessandra Villa, Università di Pavia
Relatore: prof. Riccardo Bellazzi
Correlatore: dr.ssa Lucia Ghezzi

The operational risk is defined as “the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This definition includes legal risk, but excludes strategic and reputational risk”.[1]

The problem of operational risk does not affect only banks and insurance companies: in fact the demands of the public and of health service regulatory bodies converge to require increasing levels of quality and safety from Health Care Institutions. Working committees on Health Care issues and Health Care network are created, and Health Care Institutions implement profound changes brought about by new practices in Health Care and increasing socio-economic demands while increasing their competencies in the control of risk. Risk management and coordination of vigilance are an integral part of the process of accreditation and Quality procedures.

SAS offers many solutions concerned with operational risk, that are:

• SAS® OpRisk Monitor, that is a web-based system for collecting, storing, analyzing, tracking and reporting information about: operational loss events, key risk/performance/scale indicators, risk-assessment results, and control assessment scores.
• SAS® OpRisk Var, an application that integrates risk indicators and control assessment scorecard results for dynamic modeling of operational VaR.
• SAS® OpRisk Global Data, that is a very large and comprehensive repository of information on publicly reported operational losses in excess of USD 100,000.

The aim of my work has been the customization of SAS OpRisk Monitor in order to be used by Health Care Institutions. Chapter 2 is an overview about Operational Risk and Basel II Accord, while in Chapter 3 I describe SAS OpRisk Monitor solution. In Chapter 4 I present the problem of operational risk for Health Care Institutions, while in Chapter 5 I report what I’ve done for the customization of SAS OpRisk Monitor 3.3 in order to meet Health Care Institutions’ requirements. Because of the fact that this work has been done for Italian institutions, screenshots of the software’s user interface will be reported in Italian. Finally, Chapter 6 shows the conclusions of this work.