SIGMAOpRisk is our operational risk offering. The solution brings together all relevant tasks related to professional operational risk management in one – easy to understand – framework.
SIGMAOpRisk consists of five main modules, each targeting specific tasks that are essential in operational risk management.
- Incident capture and review
- Risk & control self-assessment
- External loss experience
- Risk calculations
- Reporting & exporting
You can learn more about the individual modules in the solutions scheme below.
Bringing these very diverse tasks together in one cockpit style framework, allows risk managers to monitor, quantify, manage and report the operational risks effectively. It furthermore means that companies can do more with fewer risk ressources, as SIGMAOpRisk streamlines and automates many of the manual tasks normally associated with operational risk management.
At SigmaRiskPartners our experience includes many years of practical, strategic and model-based risk management from large financial institutions and a number of companies in industry, consulting and pharmaceuticals. We understand how operational risks are present in every company and organization.
A FLEXIBLE SOLUTION THAT HELPS YOU GROW AT YOUR OWN PACE
SIGMAOpRisk can be configured with different modules available to facilitate different requirements and ambitions. The framework exists in two standard versions, a light and full framework:
- SIGMAOpRiskLight – incident management and reporting
- SIGMAOpRisk – the full framework
The configuration of SIGMAOpRisk and SIGMAOpRiskLight is shown below, you can explore the individual modules by clicking the ‘Learn more’ links.
Your own experience with actual and near-miss operational failures. How do they map out across your organization and develop over time? Do you listen, learn and budget from them?
RISK & CONTROL SELF-ASSESSMENT
Internal assessment of how exposed your organization is to potential operational events, including defining and challenging the effectiveness of your mitigative measures.
EXTERNAL LOSS EXPERIENCE
Benchmark yourself to peer organizations and augment severe external operational events to your own loss experience. SIGMAOpRisk users can anonymously benchmark themselves and apply external losses.
How much can your organization lose due to operational failures and how likely is it? How much capital is required, who contributes the most risk and how do you include this in pricing, performance measurement and capital allocation?
REPORTING & EXPORTING
Utilize the standard reports of SIGMAOpRisk to easily perform regulatory reporting, overviewing incidents, understanding the potential events and all risk measures calculated. All data and results can be exported.
SIGMAOpRiskLight – INCIDENT MANAGEMENT & REPORTING
The SIGMAOpRiskLight application consists of the Incidents and Reporting & Exporting modules. It is tailored to support the needs of smaller and mid-size financial institutions, with primary focus on adhering to minimum regulatory incident capture and reporting requirements.
Larger banks may also opt for the Light solution, to start simple, but in a future proof fashion, where new regulatory equirements are managed by SigmaRiskPartners and higher ambitions can easily be accommodated by simply adding more modules.
The Light version solves very important tasks related incident management and reporting. However, operational loss potential exceeds many times, what can be observed from internal operational failures.
SIGMAOpRisk goes far beyond the Light version and is a full-fledged operational risk management framework that allow companies to develop, manage and report all relevant tasks related to professional operational risk management.
The Risk & Control Self-Assessment module is for internal assessment of what potential events can seriously harm the company and how these are partially mitigated by the control and insurance environment. It furthermore includes utilities for performing risk workshops.
The External Loss Experience module is for including operational loss experience from external sources like operational loss data co-operations, public sources and from benchmarking to loss levels from other SIGMAOpRisk companies.
The Risk Calculation module allows for performing risk calculations to assess operational portfolio risk including capital requirements. The risk contribution from different dimensions like business lines and Basel loss and cause categories are derived. Various stress testing can be performed by stress input calculation parameters like e.g. event correlations.
APPLICABLE ACROSS SECTORS
Although SIGMAOpRisk er primarily targeting operational risk management in financial institutions and support the extensive regulatory requirements in that sector, the solution is very flexible and can easily be configured to the needs of other sectors.
Contact us to learn more about SIGMAOpRisk.