Reduce and Eliminate Fraud, Waste and Inefficiency
Guideline Risk Technologies provides a structured operational risk identification and assessment system with detailed incident/event capture and analysis. The system is known as Risk Universe Business Intelligence (RUBI). RUBI is the right tool for eliminating dangers such as fraud, waste and inefficiency by highlighting areas of potential risk as well as identifying and categorizing risk events that have already taken place. Management is thus able to ensure compliance with all set standards under corporate governance and regulatory guidelines.
Putting Management in Control
One of the biggest problems facing management today is how to accurately identify, measure, manage and control operational risk enterprise-wide using one basic system. RUBI satisfies that need with state-of-the-art, computerized programs to monitor the vital signs of an organization on a continuous real time basis.
Under the RUBI system, information is monitored; potential risk exposures are detected; and, through the use of key risk indicators and exposure alerts, critical information is rapidly sent throughout the organization. Recommended action for correction or avoidance of the risk exposure swiftly follows. This proactive approach ensures greatly increased management awareness and rapid handling of situations.
Knowing the Risks You Face
In business today, credit and market losses are usually well-documented but the same cannot be said for operational risk—until now. Even when documentation of events has occurred it has tended to be segregated and unshared, and thus without historical significance. As a result, the quantitative value of event data for proactive trend analysis and future risk prediction has been lost.
Yet, it is vital that those events are collected in a detailed and intelligent manner and that the data is consistently analyzed in association and comparison with all other business and risk information datasets.
Under RUBI, the recording, manually and automatically, of every risk event in an organization that deviates from the way it should be, and the measurement by trends and analysis against risk indicator rules in the rules base, ensures that management is uniformly kept appraised of the risk exposures within the organization and what is being done about them. This provides for “one version of the truth”.
Success in the management of operational risk is brought about by understanding the environment one is managing. This environment is “enterprise-wide”, and the risks comprise anything that can potentially affect the ability of the organization to meet its objectives as a result of the internal failures of people, processes, systems, or external events.
Centralized information also improves the reporting capabilities of an organization, leading to improved remedial action, improved awareness and management, loss reduction, more organizational efficiency, profitability, and performance.
Spot and Handle Operational Risk Before It Becomes a Major Problem
One of the biggest challenges facing operational risk handling in large organizations has been the tendency to hide errors or misdemeanors instead of reporting them; plus a lack of understanding of the impact these mistakes can have on an organization. Operational risks, left unmanaged or poorly managed, with little attention or importance given to them by management, can seriously affect the entire enterprise. The recent, highly-publicized corporate governance disasters are examples of this.
Historically, operational risk losses have not been made public and have been difficult to monitor or even recognize in a timely way. But there were always tell-tale early warning signs that went unnoticed. Technology has improved this situation to a point where the management of risk has advanced to the levels of sophistication needed to truly handle all the factors of risk before they impact the organization.
Next: RUBI System Details ››
