Enabling a Contextual Analysis of Operational Risk
Quantitative scenario modeling and stress testing of qualitative data (e.g., risk and control self-assessments/RCSA) empowers organizations. Risk managers need to be able to apply multiple ‘what if’ scenarios to RCSA data, to measure the sensitivity of the organization, as well as lines of business and product/service, to changes in risk and control profiles. Results should be stress-tested to analyze loss sensitivity of changes to individual data points, such as the effect of the degradation of control on multiple risks across multiple business lines. Risk profiles can be simulated to exclude certain controls, to include controls that are not yet operational, or to investigate the time-sensitivity of the organization to either an increase in risk or a fall in control effectiveness. This improves the decision-making process, driving value to the organization, its’ customers, and the financial services industry. These types of analytical tools are taken for granted in other risk disciplines; they should be available as a matter of course to all operational risk professionals.
Chase Cooper, with its aCCelerate GRC suite, is a GRC solution provider that GRC 20/20 has researched, evaluated, and reviewed with financial services organizations that are using it in complex, distributed, and dynamic business environments. A component of the aCCelerate GRC suite is the Risk Intelligence Module (RIM) that delivers a solution to take in external and internal inputs, leverage the breadth of qualitative RCSA and operational risk data, and deliver a quantitative scenario analysis.
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Table of Contents
- Organizations Need Full Contextual Analysis of Risk
- Chase Cooper Risk Intelligence Module (RIM)
- Enabling a Contextual Analysis of Operational Risk
- Benefits Organizations Have Received with RIM
- Considerations in Context of RIM
- About GRC 20/20 Research, LLC
- Research Methodology
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