ORX delivers industry-first Control Library for operational and non-financial risk
- 13 December 2021
ORX, the world’s largest association of operational risk professionals, along with McKinsey & Co. as a knowledge partner, is developing a Control Library for operational and non-financial risk (ONFR) in Financial Services (FS).
Building on the success of the ORX Reference Risk Taxonomy and based on control data collected from nearly 50 financial services firms, this will be the most comprehensive global effort of its kind. The Control Library is designed to support organisations to better understand and benchmark their own controls against industry practice, enable shared learning, and develop and standardise shared controls practices across the industry. This provides management with the information they need to increase the efficiency and effectiveness of their control environment.
The initiative combines the data science expertise of McKinsey & Co. with member industry insight from ORX.
Steve Bishop, Head of Risk Management Programmes at ORX comments,
“Financial Services is evolving at pace. Covid-19 has both changed organisations’ operating models and accelerated the race to digital.
“This has created an opportunity for ONFR teams to step up and support the business as it goes through this transformation, making ONFR resilient and enabling risk leaders to innovate how they serve the business and add value.
“Core to this resilience is a well-controlled organisation. Understanding and operating an efficient and effective control environment will enable a business to deliver change, optimise resources and manage risks. Working with McKinsey as a knowledge partner, we are able to develop this Reference Control Library for financial services based on ORX member industry data which ultimately aims to help FS organisations deliver on these objectives and safeguard stakeholders.”
Daniel Mikkelsen, Senior Partner, McKinsey & Co., adds,
“Many in FS have developed their own control libraries to provide structure for how controls are discussed, reported and ultimately managed. Yet it is a time consuming and complex process.
“Without standardisation within and between organisations, the ability to benchmark and share insight on an industry-wide basis is limited.
“These are just some of the reasons, we have come together with ORX as a knowledge partner to deliver this strategically important initiative.”
The Control Library will initially be available to ORX member organisations in Q1 2022, and later launched to the industry at large.