Op risk taxonomy:
Building an industry taxonomy
“Our strategic priority was to create a common point of reference for operational risk taxonomies, laying the foundations which allow industry debate and consistent industry sharing of insights and data going forward."
Simon Wills, Executive Director, ORX
In 2018, we launched our award-winning level 1 reference taxonomy. This was the result of months of work done with over forty financial institutions from our membership.
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 collaborated with global consulting firm, Oliver Wyman. We've now published the new version of the ORX Reference Taxonomy for operational and non-financial risk, which updates the level 1 risks in the 2018 version and dives further into level 2 risks.
Next year, we are aiming to create a cause and impact taxonomy and continue to work on controls, allowing us to provide an even more comprehensive resource for the industry.