ORX launches world first industry-wide controls library for operational risk
- 5 September 2022
We’re delighted to announce that together with McKinsey & Company as a knowledge partner, we’ve launched a world first industry-wide controls library for operational risk.
Based on control data collected from nearly 50 financial services firms, it is the most comprehensive global tool of its kind and will help to develop and shape standardised controls practices across the financial services industry.
Containing a total of 761 typical operational risk controls, the ORX Reference Control Library combines the data science expertise of McKinsey & Company with member industry insight from ORX and is aligned to the successful ORX Reference Risk Taxonomy.
The ORX Reference Control Library is available for free to ORX members on our member-only website or for non-member institutions to purchase.
About the library
The library is designed to support organisations to better understand and benchmark their own controls against industry practice, to enable shared learning and to provide insight into the efficiency of their control environment. It can also save them time and money helping to accelerate the development of their own control library.
Steve Bishop, Research & Information Director at ORX comments:
“Many of our members were spending significant time and money on improving their controls and some had built their own Control Library. These in-house libraries, which are based on a financial organisations’ proprietary data and insight are extremely useful, but we saw an opportunity to take the collective data of 50 organisations to create an industry view.
“The library also creates the opportunity for industry control benchmarking, this is particularly important with operational and non-financial risk and control being an important topic on boardroom agendas.”
Daniel Mikkelsen, Senior Partner at McKinsey & Company adds:
"We’re delighted to serve as a knowledge partner with ORX to develop a robust and comprehensive reference library of typical controls used to mitigate different types of operational and non-financial risk. We believe this library will be a valuable resource for financial institutions to compare their internal controls with typical control types, to facilitate the development of their own control libraries, and to share and benchmark information to derive insights into the importance of their controls in mitigating risk. The library also enables institutions to streamline control identification and assessment processes across their businesses and to standardise and simplify their controls.”
"In line with the increased digitalisation of operational risk practices, the library is available as an interactive, digital interface to enable users to explore connections, themes and patterns for maximum insight. It also comes with the full controls list and guidance on how to use and interpret the data."
Efe Cummings, Global Head of Operational Risk at Nomura and ORX Board Member explains:
“The Control Library is a really important development for financial services. It not only helps each institution to enhance their control environment and practices, it will also help the industry to develop more standardised practice, leading to better benchmarking, data sharing and improved risk management insights. The product demonstrates the power of members working together as part of the ORX community.”
Steve Bishop adds:
“Understanding and operating an efficient and effective control environment enables a business to deliver change, optimise resources and manage risks. Our Control Library helps risk leaders on this journey to ultimately deliver for and safeguard their stakeholders.
“Using the library, you can now benchmark within your organisation and against an industry reference. We’re also exploring an additional layer of benchmarking which could include peers in the future.”
How to access the ORX Reference Control Library
ORX members can access the library on our member-only website for free. Or if you're not a member and want to learn more about how you can access the ORX Reference Control Library then why not book a quick call today to find out more?