Operational risk management

OUR EXPERTISE IN OPERATIONAL RISK MANAGEMENT

The identification, management and anticipation of operational risks are nowadays fundamental steps in the sound management of a company. The implementation of an effective operational permanent control framework within the various business lines/functions of an organization is a guarantee of secured processes and mitigation of underlying risks. In accordance with the fundamental principles of the prudential regulations in force, this system must be coupled with the existence of an independent second line of defence, with a dual responsibility of supervising the permanent control framework and supervising the system for measuring and managing operational risks. Given the constantly changing context, the proper identification, analysis, monitoring and prevention of risks are, essential to anticipate, identify and understand risks as well as to correct and reduce them by implementing proper action plans.

Transvision Consulting your operational expert in the implementation of a permanent operational control system

Responsibility for risk management starts within the various business lines, as close as possible to operational processes.

Transvision Consulting brings its expertise and help in order to build an effective and efficient framework to anticipate and manage your risks in full compliance with regulatory constraints. It involves various formalised analysis steps and their transversal validations by all stakeholders. Methodolgies involved include :

The identification of operational risks through operational risk cartography (RCSA : Risk Control Self Assessment)
The elaboration and implementation of a control plan,
The definition and use of Key Risk Indicators (KRIs) enabling a proper management of the framework,
The set-up of a system for collecting, monitoring and the escalation of operational risk occurences,
The drafting of incident reports and the computation of their potential cost,
The management of the operational procedures,
The implementation and monitoring of action plans to anticipate and correct risks,
The follow-up of audit recommendations and permanent control actions to be implemented,
The implementation of an adequate alert and reporting system.

Examples of implementation

Implementation of the AMA (Advanced Measurement Approach) methodology. Identification and assessment of risks for the determination of operational control plans for the Corporate & Investment Banking (CIB) activities of a subsidiary of an international bank in Switzerland (Geneva and Zurich)

Drafting of the anti-fraud control plan for the Capital Markets business line of a subsidiary of an international bank in Switzerland (Geneva and Zurich)

Conducting awareness sessions on the proper management of operational risk for all employees of the CIB activities of a subsidiary of an international bank in Switzerland (Geneva and Zurich)

Your operational expert in the supervision of your system

Transvision Consulting also provides you with its experience, via a robust and efficient methodology that fully meets the regulatory requirements, as a second line of defence in order to supervise the entire operational permanent control system. As part of its supervision, Transvision Consulting can :

Carry out a global audit of your framework with a view to anticipate risks in a constantly changing and transforming environment (VUCA: Volatility, Uncertainty, Complexity, Ambiguity)
Carry out a critical analysis of risk maps and associated control plans
Implement a system for alerting and managing significant incidents identified in the context of operational risk measurement and management
Set up an integrated and cross-functional crisis management and action plan monitoring unit in order to sustainably control risks and ensure optimal profitability for your structure
Carry out independent testing missions via re-performances of controls or more complete reviews on specific high-risk issues
Ensure the production of consolidated reports for Management bodies and possibly the Regulator
Organise specific Top Management committees
Train employees on the main principles of operational permanent control.

Examples of implementation

Creation and management of Internal Control Committees for the Entities of an international Bank present in Switzerland under the chairmanship of the country's CEO.

Creation and management of a team of experts (Operational risk officers) in IT, Cyber and Business Continuity in order to supervise the entire IT, Security and Business Continuity operational system of a subsidiary of an international bank in Italy (Rome).

Creation of an e-learning on the main principles of operational risk management and permanent control for all employees of a subsidiary of an international bank in Italy (Rome).

Creation of a service contract between the RISK ORC (Operational Risk & Control) IT, Cyber & Business Continuity department of a subsidiary of an international bank in Italy (Rome) and the RISK ORC department of a Group entity in Italy (Milan) in order to pool expertise costs.

Transvision Consulting: the right choice!

Identifying risks is one aim, controlling or even anticipating them is another in an environment challenged by increasing cyber and fraud risks. Only a transversal and integrated system in a collaborative and transparent mindset can enable your Organization to operate its processes and develop business activities safely.

Transvision Consulting is your ideal partner and is associated with your success in total respect of your values and with a concern for the complete transmission of its know-how.