OPERATIONAL RISK
In December 2017, the Basel Committee published the final description of the new Standardised Measurement Approach (SMA). This affects the Pillar 1 RWA calculation for all banks regardless of the quantification techniques currently in use. It is also a good opportunity to review the approach used in the banks’ Pillar 2 (ICAAP) process as well as other aspects of the operational risk management framework.
Finalyse has extensive experience in helping our clients quantify operational risks - including the expanding list of Pillar 2 risks discussed in the annual SREP review. A consultation with our experts regarding other aspects of the operational risk framework such as KRI’s, risk appetite and tolerance, as well as model risk management, could also be beneficial to you.
How does Finalyse address your challenges?
Avoid mistakes like a “zero tolerance” policy for operational risk
Complex treatment of all aspects of your ORM framework
You decide if we should help your team or get the work done for you
You decide how simple or complex your ORM framework should be
You do not have to aim for AMA to benefit from talking to us
Key Features
- A pragmatic approach addressing the needs of your business – we help you decide, how simple or complex your ORM framework should be.
- A fully integrated approach – we provide a framework design and implementation.
- Pillar II methodology – an opportunity to review the approach used in the banks’ Pillar II process.
- Consulting, participation and project management – our multidisciplinary team of experts has expertise and resources to tackle all your challenges.
- Technology independent approach – we are not software vendors, but have experience and good working relationships with many.
Our subject matter experts
Peter Kovacs works as Director based in Budapest with 18 years’ experience in risk management and modeling related to retail credit risk and operational risk. He led and participated in developing, validating and implementing advanced (IRB, AMA) models, component models (PD, LGD, EAD/CCF) at several European banks and banking groups, supporting SREP preparation, ECAP and stress test validation, model governance framework development.