Operational Risk Management (ORM) Software Solutions

Organizations are developing systematic oversight programs to address day-to-day operational risks including the risk of loss from inadequate or failed internal processes, people, and systems, or from external events. Many of these initiatives and activities are primarily owned and managed within a specific department or function. By adopting an integrated approach, companies can ensure that all operational risk management initiatives are sustainable processes aligned with the corporate strategy, and not unrelated tactical projects.

MetricStream ORM Solution

The ORM software solution from MetricStream enables organizations to document and assess operational risks, define controls, manage audits, and implement recommendations and remediation plans. The system integrates all ORM related data and processes --including a reusable library of risks and their corresponding controls and assessments, results from individual assessments, key risk indicators, events such as losses and near-misses, and issues and remediation plans -- in an integrated solution.

Role-based dashboards, control diagrams, and scorecards provide visibility into ongoing ORM management efforts, and highlight high-risk areas. The software has the ability to track process ownership, assessment plans, remediation status, etc. on graphical charts that provide real-time information globally. Information can be drilled down to deeper levels.

The solution provides both software and content with embedded best practices to define the scope of ORM processes and sub-processes,and guide the development of control and test libraries. Other intelligent and content driven features include access to training content from an expert community, and integration of business processes with regulatory notifications and industry alerts.

Key Capabilities of the Operational Risk Management Solution:

• Operational Risk Analysis and Risk Assessment: The MetricStream solution provides a centralized risk framework to document all risks faced by an organization. Risk Control Self-Assessment (RCSA) capabilities, which form the core of the solution assists in risk identification and assessment based on a flexible rating mechanism.
• Control Design and Assessments: Once key risks are identified and prioritized, the ORM solution provides a flexible framework to define a set of controls to mitigate those risks. The system supports control assessments based on predefined criteria and checklists. It also provides an advanced mechanism for scoring, tabulating, and reporting the results.
• Loss Tracking and Key Risk Indicators (KRIs): With loss event tracking, risk managers can track loss incidents and near misses, record amounts, and determine root causes and ownership. Key risk indicators (KRIs) help track risk metrics and thresholds, and automated notifications help identify when thresholds are breached.
• Issue Management and Remediation: For issues arising from the assessment and auditing processes or from any other external events such as loss-events, scenario analyses, or “near-misses," the MetricStream solution provides seamless issue management and remediation management capabilities. It helps trigger automatic alerts and notifications for the appropriate personnel to begin investigation and remedial actions.
• Reports and Dashboards: The ORM solution has the ability to track risk profiles, control ownership, assessment plans, remediation status, etc. on heat maps and graphical charts that can be accessed globally and display real-time information. The ability to drill-down provides an easy way to access the data at finer levels of detail.

MetricStream ORM Solution also provides other intelligent and content driven features such as access to ORM training from an expert community, and integration of business processes with regulatory notifications and industry alerts.