Control management practice benchmark

  • 18 September 2018

In 2017, ORX conducted a research project aimed at understanding how financial firms manage their control management frameworks. In response to the strong interest from ORX members for this project, we conducted further research in this area to run the Control management benchmark in mid-2018, which is now complete. You can download the summary report below. 

In this practice benchmark study, we developed a matrix assessing six key areas of control management practices. Using the matrix, project participants then self-assessed the maturity of their practices against the benchmark. As well as receiving the maturity matrix, each participant also received a customised report showing their individual results against those of the industry. The benchmark served as a tool to identify strengths in control management practices, as well as areas for improvement.

Download the summary report below for more details. 

Control management practice benchmark summary report

The maturity matrix

The maturity matrix identified six areas of control management practices with up to four sub-areas. For each of the sub-areas, criteria were developed against which firms self-assessed at three stages of development.

Controls

The project report

In addition to receiving a customised benchmark report, participants received a project report, which highlighted the key findings from the study. The project report shows that, while firms are progressing, even those leading the industry feel they have some way to go.

Controls diagram

The figure on the left provides an overview of the average stage of development in each of the six focus areas of control management. At first glance, the figure seems to indicate a classic evolution of practice that starts with the development of the written framework and associated roles and responsibilities (i.e. areas 1 and 2), before moving onto implementation and embedding of the tools and processes (i.e. areas 3 to 6).

In addition to highlighting the main study findings, the report looks in more detail at each of the main maturity areas this benchmark explored and identifies where the main opportunities are for improving control management practices.

A summary of the study highlights can be downloaded below.

Our practice benchmarks 

We are working with the industry to develop practice benchmarks to help assess the maturity of an institution’s operational risk management practices. Our practice benchmarks support new data exchange, increase the efficiency and credibility of practice, and inform supervisory policy and practice. To find out more about our practice benchmark studies, please contact us

Get your own individual benchmark report

Although ORX runs the initial development of a new area of practice as a project, the individual benchmark reports can be provided at any time. 

Please get in touch if you would like to receive your own customised benchmark report.

Participation is free for ORX members. The cost for non-members is just £4,000 which is refundable if you become a member of ORX within a year.

Download

Control management practice benchmark summary report

Find out more

To find out more about our practice benchmarks, please contact us. 

Contact us