Display, Monitoring and Management of Operational Risk
Guideline’s approach to operational risk confronts the full range of material risks for any organization. It captures the principal causes of loss through a system of self-assessment, loss events, audits, and key risk indicators.
The Risk Universe Business Intelligence (RUBI) system is a platform for the display, monitoring and management of all operational risk. It provides users with tailored reports detailing: event type, location, severity, timelines, history, and handling of all risk-related data. Responsible managers are timely informed of event loss data using: automatic alerts, e-mail notification, details of previous handlings, and any other combination of data considered relevant.
Real, useable information—not just industry compliance
RUBI is not restricted to seeking compliance with regulatory rules and standards, capital requirements, etc. It is not simply a matter of problem-solving. The system provides a wide, flowing stream of information essential not only to operational risk handling but also to greatly improved economic performance, credit rating, reputation and shareholder confidence.
A good operational risk management system can make all the difference between success and failure in meeting the organization’s goals. It brings together in a common purpose directors, managers, staff and shareholders under one enterprise-wide umbrella.
RUBI tracks and validates remedial actions from initial discovery to the stage where the real issues are finally resolved; as well as a full audit trail to help users comply with industry standards and regulatory requirements.
RUBI makes use of the following tools to achieve results:
• Operational Risk Framework
• Corporate Governance Management
• Business Intelligence Risk Rules Engine
• Event/Incident Recording and Management
• Fraud and Corruption Detection and Handling
• Risk Assessment Tools
• Internal Audit Tools
• Internal Controls Management
• Financial and Key Performance Indicators
• Key Risk Indicator Monitoring
• Dashboard Reporting
RUBI in Action – Speed and Efficiency
RUBI reduces the need for manual intervention by electronically monitoring the overall health of the organization enterprise-wide. This managed environment reduces the margin for error and increases speed and efficiency in handling operational risks or dealing with actual loss events.
These improvements include:
• Reduction of paper flow. The system provides for immediate reporting of threats and losses online. Incidents are uploaded from current system databases into the central database so that management of all incidents is centralized, i.e. one electronic file contains all corresponding data (pictures, investigation notes, audit working papers, etc).
In this way risk managers can ensure that no vital information relating to incident cases, audits or risk assessments is lost in the paper shuffle.
• Information on trends and the status of risk exposures is sent to the right risk owners using risk rules analysis, email and SMS-based reporting.
• Timely and accurate reporting allows for speedy action on potential and actual losses, reducing the possibility of fraud and other risks at some point in the future.
• Remedial action compliance or non-compliance is easily tracked and controlled.
• Audit findings compliance or non-compliance is quickly handled.
• Frequency and severity of losses are established and used to back-test risk assessment ratings.
• Staff efficiency and risk awareness are increased.
• Reimbursement of losses to business units, recoveries from third parties, and claims against insurers are easily monitored.
• Legal management of all incidents under criminal and civil procedures.
• Advanced drill-down plus “slice-and-dice” reporting.
• Monitoring of efficiency and effectiveness of controls.
• Tracking and tracing of remedial actions required to improve controls and adhere to legislative and corporate governance guidelines
The challenge facing operational risk managers today is to install a structured and comprehensive approach to risk, demonstrating a robust solution to regulators, boards, auditors, and shareholders alike. Such a diverse area of risk requires a dynamic approach far removed from the old hit-and-miss methods of the past. RUBI is such a solution and has already proven itself many times over in its current working installations.
