Global

Details

  • Service: Advisory, Risk Consulting, Financial Risk Management
  • Industry: Financial Services, Banking
  • Date: 3/2/2011

Preparing for the Unexpected 

Operational risk is an evolving discipline in which many global banks are either currently improving their scenario analysis processes or actively thinking about doing so. This executive summary is the outcome of a study by KPMG in conjunction with the ORX Association, the leading global operational risk data exchange and association in the industry.
Download Now
PDF files require Adobe Reader to view

The study identifies and validates a common approach that banks can use to help gauge the relative maturity of their scenario analysis processes. The high –level building blocks that comprise the approach are:

  • Governance
  • Preparation
  • Assessment
  • Validation
  • Reporting

 

Each of these building blocks is, in turn, made up of components that can be separately described and evaluated. These components were explored in some detail in workshops, producing maturity matrices. These matrices can be used by a bank to frame a view of its current state.