Overview

HOPEX Operational Risk Management helps you streamline your risk management processes – from risk identification through to reporting — with actionable data and metrics to support business growth and profitability.

With HOPEX Operational Risk Management, you can:

  • Ensure compliance with financial regulations
  • Improve ORM quality and effectiveness
  • Automate the consolidation and communication of risk exposure

Key Features

Incident Management and Risk Quantification Phase: Managing incidents and calculating capital allocations

Collecting incident data

  • Incidents are entered manually or imported from a third-party application
  • Losses, provisions, and recoveries can be associated with each incident
  • Incidents can be linked to types of events, business lines, and risks

Calculating capital allocations

  • Capital-at-Risk (CaR) is calculated using three approaches: BIA, TSA, and AMA
  • For AMA, a capital model is built based on the incident and loss matrix
  • Value-at-Risk (VaR) is estimated based on past losses using Monte Carlo simulations, as well as advanced statistical analysis methods such as log-normal, Weibull, and Poisson distributions

Risk and Control Self-Assessment Phase: Identifying, measuring, and consolidating risks

Identifying and assessing risks

  • Supports bottom-up and top-down identification processes
  • Risks are mapped in relationship to their context using graphical risk mapping capabilities
  • Indicators, analytical reports, and summary reports are generated to facilitate risk library management
  • Risks are assessed by experts or an Own Risk and Solvency Assessment (ORSA)

Consolidating risks

  • The different measurements for a given risk are aggregated, and exposure to the risk is automatically calculated for each business process, business unit, and type of risk
  • Future risk exposure is forecasted based on measurements from previous years and the implementation of action items

Risk Treatment Phase: Monitoring risks and following up on action plans

Monitoring risks with appropriate controls

  • The response to each risk is determined: accept as-is, reduce, provision, or insure
  • Appropriate controls and action plans to reduce the risk are defined and implemented

Following up on action plans

  • Reports are generated so you can easily track progress on action plans
  • Action plan effectiveness is measured by comparing inherent and residual risk exposure

HOPEX Operational Risk Management is integrated into MEGA’s single platform. That means you get enhanced synergies for advancing your business and IT transformation, as well as a clear, common view of key information about your organization.