How can ORX News support your scenario practice?

  • 29 October 2019

Did you know that you could use ORX News to support your firm’s operational risk scenario programme? Focused solely on operational risk, the ORX News service brings together publicly reported loss events from around the world. Many of our ORX News subscribers use the data from the service to help them either create, validate or refresh and update their scenarios. Here are six ways you can use ORX News to improve your scenario programme.

1. Find out the types of losses that could happen at your firm

One of the most obvious ways for scenario practitioners to use ORX News is to find out what could happen. You can search the stories to find out the types of losses that financial institutions are experiencing.

You can then refine this by region and country to find loss events that are more relevant or likely to happen to your company. This helps you to understand what types of operational risk events you should be focusing on in your scenarios.

2. Understand the financial impact of the event

Each news story includes the loss amount for each event where available. Use this to help you estimate the cost of your scenario – it can also help you work out the relevant cost components you should include.

3. Find out what drove the event

In every loss event reported by ORX News, you get a summary of the event explaining what happened and how. You can use this to help you see which risk drivers (also known as severity drivers or severity factors) you need to include for that type of scenario.

4. Use the scenario categories

We categorise all ORX News stories by business line and event type. They're also marked against one of the 35 different scenario categories used in the ORX Scenarios library. If you’re only interested in creating, updating or validating a specific scenario, then you can use the scenario category filter to find all the loss events related to that category. For example, use the filters to find loss events tagged with the cyber-related data breach or anti-money laundering failures scenario categories.

5. Use the ORX News newsmap to see frequency and impact of loss events

ORX News newsmap

ORX News can help to see what areas of operational risk you need to have scenarios for. The ORX News newsmap (pictured above) is a great way of visualising the risk landscape. It shows what types of events are occurring most frequently and which have the highest impact. Like all our news stories, you can filter the news map by business line, event type and region to help you drill down the results even further.

6. Get even more insight with Deep Dives and editorial reports

ORX News subscribers can request up to three Deep Dives a year for free as part of their annual subscription. This is a great way of getting even more insight into a specific loss event and giving you further, detailed information for your scenarios.

Download a free example of an ORX News Deep Dive to see what’s included. This example Deep Dive looks at how poor outsourcing management cost Raphaels Bank £1.9 million.

ORX Scenarios

Looking for more support for your scenario practice?

Find out how ORX Scenarios can help