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. 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.
Op 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.
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.
Op risk management
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 receive an individual maturity report, comparing their institution to others in the study.
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.
Loss data collection practice benchmark
Find out the range of practice for loss data collection and benchmark your organisation’s maturity. This will be a precursor to work we plan to do on the SMA later on in the year. As this is part of our practice benchmark series, all participants receive an individual maturity report.
KRI library & controls objectives library
We will be developing a KRI library (appetite metrics library) and reference library of controls objectives.
Op 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.
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.
Economic capital methodology study
This is a study on participants’ economic capital methodology, determining the range of practice within the industry.
Capital benchmark study
We carry out this study each year for our banking members. It provides a unique insight into levels of capital held by the banking industry.
Factor driven quantification
We will be running a pilot study exploring this area.
Material risks in focus
Cyber & information security programme
Working closely with our group of cyber experts, we're continuing to develop our cyber & information security (CISR) programme, with the aim of launching a regular data-sharing service for this specific material risk.
2020 Operational Risk Horizon report
This is the result of a research study looking at the top current risks and emerging risks identified by participants. Keep an eye out for the report which will be available soon.