During the last decade, we have been witnessing a significant overhaul of business frameworks, including drastic regulatory and market reforms. In addition, organisations are becoming even more prone to large scale cyber-attacks, corruption, and events arising from a rapidly changing geopolitical order. These changes have brought about serious adverse consequences to an organisation’s stability and sustainability.
Synectics Operational Risk Solutions, enable Organisations to effectively and efficiently manage the Risk of Loss from inadequate or failed Internal Processes, People, Systems, and External Events. The System maintains and manages a register of Loss and Near-Loss Events, the Business Activities that incur those losses, and related Risk Indicators. This is vital in understanding the Controls and Mitigating Actions required and essential in calculating the Capital Reserve against future Operational Losses.
At the same time, a Risk Control Self-Assessment is an empowering process through which all levels of an organisation collectively identify and evaluate each Business Unit’s Risks and associate Controls and Key Risk Indicators. Synectics Solutions enable our Clients to integrate Risk Management practices and culture into daily operations. This results in effective identification, assessment and management of high risk areas, followed by subsequent evaluation of the adequacy of implemented controls and monitoring of Key Risk Indicators.
Clients can register each Loss or Near-Miss Event under an appropriate Event Type as indicated by the organisation’s Risk Management Framework. Losses, Recoveries and Insurance amounts can be categorised under affected Business Units. Operational Risk officers can further assign and monitor responsibilities and actions to prevent or reduce the impact of an event reoccurrence.
With the guidance of the Operational Risk Team, all levels of management and staff from all business units collectively identify and evaluate possible Risks. The team can associate controls to compensate or mitigate each risk factor and re-evaluate the effectiveness of those controls. Key Risk Indicators are associated with each Risk, and with proper integration with other Systems in the organisation a monitoring and Early Warning System is put in place. The System facilitates the collection, automated input, consolidation, and reporting of RCSA forms.
Using our reporting engine, Operational Risk Officers can easily generate reports for regulatory authorities as well as a wide range of management reports. Powerful visualisations will also enable you to better understand your organisation’s Operational Risk. Embedded proprietary risk models will calculate the capital reserve required against future operational losses.