Operational risk research studies and initiatives for 2020

  • 8 January 2020

We’ve just launched our programme of research studies, practice benchmarks and initiatives for 2020. After talking with our member institutions, we’ve identified a number of important new areas to explore – such as operational resilience and material risk identification – and are continuing our research on key topics, including cyber and stress testing.

One of the many benefits of ORX Membership is being able to take part in all relevant projects for free as part of your membership subscription. If your institution isn't a member of ORX, you can still take part in individual studies. Email [email protected] to find out how.

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ORX projects, studies & initiatives in 2020

These are the projects and initiatives we have planned so far this year, grouped by whether they are part of operational risk measurement, management, strategic development or material risks in focus.

Operational risk management

Three lines of defence

This research study will look at the variety of practice in the industry and direction of travel, identifying good practice and providing case studies.

Material risk identification practice benchmark

In this practice benchmark we will discuss the methods and process for identifying materiality for risk identification that firms employ when creating their material risk inventories. Participants will receive an individual maturity report as well as a report summarising the industry findings.

Loss data collection practice benchmark

Find out the range of practice for loss data collection and benchmark your firm’s maturity. This will be a precursor to work on the SMA later on in the year. Participants will receive an individual maturity report as well as a report summarising the industry findings.

KRI library & controls objectives library

We will be developing a KRI library (appetite metrics library) and reference library of controls objectives.

Operational risk measurement and data

Annual public loss reports

These are the only public reports we publish on our global banking and insurance loss databases, exploring key trends driving operational risk losses today.

Read the latest banking loss report | Read the latest insurance loss report

Correlation reports

These reports cover both the banking and insurance industries and look at the loss data. The aim of these studies is to use the ORX loss database to better understand the range of correlation values between the ORX standard risk types. 

Stress testing projects

Each year, we carry out a number of studies on the various stress tests that our member firms have to take part in. Our projects related to stress testing in 2020 include EBA stress testing, CCAR benchmark & ICAAP methodology study.

Explore our previous research on stress testing

Economic capital methodology study

This is a study on participants’ economic capital methodology, determining the range of practice within the industry.

Capital benchmark study

This is our annual study looking into the levels of capital held by the banking industry. This survey uses our secure confidential Insight platform due to the data collected.

Exploring risk exposure methodologies

ORX’s major new initiative will advance the use of structured, risk-factor driven approaches to operational risk measurement. We’ll explore the current and potential use of the approaches and opportunities to collect and benchmark relevant risk factors.

SMA validation

We will look to explore how ORX can support members as they move into the SMA.

Enhancing ORX loss data services

An evaluation of the ORX loss data services and assessment of how they can be evolved to meet the future needs of operational risk.

Operational risk strategic development

Reimagining operational risk

This is an ongoing research study from 2019. We are working with senior operational risk professionals to explore what the future for operational risk in a digital era will look like.

Operational resilience

An area of increasing discussion, we are forming a community around this topic to discuss what this means and how institutions are approaching this challenge.

ORX reference taxonomy initiative

Following the updated Reference Taxonomy which we published last year, we'll be doing further work on the taxonomy. In 2020 we are planning to focus on cause and impact.

Material risks in focus

Cyber & information security programme

We are continuing with our cyber & information security (CISR) programme, with the aim of launching a regular ongoing service for this specific material risk, including data sharing and research.

Climate discussion groups

We are continuing our series of discussion groups exploring the topical issue of climate.

2021 Operational Risk Horizon

This research study looks at the top current risks and emerging risks identified by participants.

Download the 2020 Operational Risk Horizon report

Join our studies

If you'd like to find out how you can take part in our projects or initiatives, please get in touch.

Email [email protected]