Op risk taxonomy:
Building an industry taxonomy

“Organisations are telling us that the operational risk landscape has evolved to the point that the event-driven Basel taxonomy wasn’t fully supporting their risk management activities.”
Luke Carrivick, Head of Research and Information at ORX

In 2018, we launched our award-winning “level 1” operational risk/non-financial risk (NFR) reference taxonomy. This was the result of months of work done with over forty financial institutions from our membership.

Our resulting reference taxonomy received lots of interest from all levels of the operational risk industry – including winning industry initiative of the year at the operational risk awards 2019. In May 2019 we announced that we are now working on expanding our taxonomy to go deeper into level 2 risks. For this second stage of our initiative, we are collaborating with global consulting firm, Oliver Wyman.