Operational Risk Management Systems - Case Study

Overview

What are the factors needed for a successful implementation of an operational risk management (ORM) system? How can the benefits be realized in the post implementation phase? This study is drawn from the experience of a mid-sized North American retail bank that completed its system implementation and roll-out in nine months to comply with Sarbanes-Oxley deadlines and Basel 2 guidelines. Because of the urgency, it had to implement the ORM system using its existing business structure with time for only very limited business re-engineering. It can be argued that the full benefits of an ORM system require the implementation and continual monitoring of best business and risk management processes and practices.

Topics covered include:

• Factors required for successful implementation of an ORM system in a financial institution
• User expectations and benefits realization
• Necessary factors for optimum use of an ORM system