Operational Risk Management is defined under the Basel Banking Accord as the risk of direct or indirect loss resulting from inadequate or failed internal processes, people and systems or from external events.

Whatever your business and even before you have sold a product, operational risk threats are prevalent. The ability to understand such exposures, both in likelihood of occurrence and impact ensures that you can prioritize effective control for the most serious of risks. Understanding causality of faults will also assist staff improve their business practices, reduce costly errors and maintain a high level of delivery to your customers.

Azilon Risk Manager solution automates the entire process of operational risk, including loss data collection, control self-assessment, risk self-assessment, key risk indicator in one single product. It provides a transparent environment that enables organization to manage the entire process - from identifying risk, to measuring, mitigating and monitoring it on an ongoing basis.

Mapping:
All modules (loss event calculation, control self-assessment, risk self-assessment, key risk indicator) furnish specific pieces of information that have to be combined to show a risk profile of the organization. The ability to tie each data feed to a line of business, business function, product and risk category is an inaugural contextual step that enforces transparency, policy and assists in bank wide management of data collection and exposure. Azilon Risk Manager is able to map business units both by function and geographical location. This assists in defining any concentration exposures that might exist from catastrophic events.

Loss Data Collection:
Loss Data often referred to as internal data and is the process of accurately tracking loss event information and assigning such data points to business units, processes and control failures that caused or contributed to a fault. Azilon Risk Manager has a feature rich & easy to use loss data system designed specifically to support Basel II.

Key Risk Indicator:
To base capital on internal and external loss data alone is backward looking. Key Risk Indicators are a forward looking metrics for managing events before they occur. They are also used to support specific data sets in the model such as scenario analysis. Key Risk Indicators are linked to controls, risks and other variables of the system and is assigned to a specific business unit, product and location for reporting and management purposes. Ability to highlight which Key Risk Indicators are performing poorly and the associated underlying risks is an automatic process for the KRI.

Control Self-Assessment:
Control Self-Assessment (CSA) is a powerful and increasingly popular governance tool that can help auditors and managers examine and assess business processes and control organizational effectiveness. Core features include tracking of business unit control questions and their respective scores, version control of questions, qualitative and quantitative assessments, listing overdue control assessments, show residual exposure post control assessment and inserting additional contextual information against a questionnaire.

Risk Self-Assessment:
Risk Self-Assessment allows business unit management to flag both existing threats that are causing losses and potential issues that interfere with the banks delivery of products and services.

Reports & Dashboards:
The solution includes various business unit reports, risk assessment reports, heat maps and dashboards to monitor exposure as it happens to show the underlying risks and functions that are contributing to the risk performance.