Operational risk management
With Basel II embedded within retail banking processes, the need to identify, measure, control and mitigate operational risk is well understood.
Nevertheless, it's surprising just how many banks still fail to take a holistic approach to this activity - and therefore leave themselves severely
Daily operational pressures mean that whilst each department performs its own risk management activities, efforts are often not coordinated. Different
metrics, report methods and systems make it impossible to understand overall business exposure. The result? Banks may be over-exposed or reserving
surplus capital to cover anticipated losses, and seriously damaging their profitability.
How SAS Can Help
SAS® OpRisk Management is a single, centralised system for identifying, collecting, measuring, monitoring, analysing and reporting risk exposure
across an organisation. It enables banks to not only manage operational risk more effectively, but to optimise capital allocations and reduce operational losses.
Through SAS OpRisk Management, your business can:
- Create an organisation-wide culture of risk management, through a systematic framework for capturing risk factors and relationships
- Assess risk exposures and impacts across the business, eradicating siloed working
- React to risk exposure faster and more proactively, sharing scorecarding, notification and reports across the business
- Optimise allocation of capital reserves to protect valuable profits
- Comply with regulatory requirements including Basel II
The SAS OpRisk Management solution comprises three elements:
- SAS® OpRisk Monitor, a web-based application that collects, manages, tracks and reports information about operational loss events, key risk indicators, risk-assessment maps and control-assessment scores
- SAS® OpRisk VaR, a sophisticated yet user-friendly analytic Value at Risk model that enables users to dissect, drill-down, adjust, trend and plot operational loss data, following a fully transparent, intuitive and sequential process
- SAS® OpRisk Global Data, a comprehensive database of external loss data that enriches the statistical sample used for modelling