The Data Collection Module (DCM) collects and organizes the loss events information in a structured and coherent way, sorting it by Business Line and Event Type in compliance with the Basel II Accord.
Data relevant to Operational Risks are collected on the basis of the Event, which has to be registered, matched with other information (losses, recoveries, and provisions), controlled and validated before further computing, analysis and reporting.
The OpRisk Evolution suite supports a wide range of statistical models and flexible and strong simulation instruments for timely evaluations of the capital at risk. Thus, users are able to effectively analyze multiple scenarios, to represent them with the distribution that best fits loss data, and to generate a reliable figure for the capital at risk thanks to a powerful Monte Carlo simulator.
The strong points of this module are the following:
- users can freely choose how to organize the scenarios to be analyzed;
- users can choose whether to perform a parametric analysis, best fit; distributions, or an analysis based only on the empirical data distribution
- fitting:
- great array of available distributions, with the chance of implementing new ones on demand;
- pre-analysis and analysis tools to find best fit distributions;
- goodness of fit tests;
- use of the Extreme Value Theory to model impact distribution and to find the body-tail separation threshold ;
- powerful and efficient MonteCarlo engine to retrieve the loss distribution;
- possibility of using copula functions to aggregate data.
The Generic Assessment Module enables users to design and manage any kind of assessment, with complete freedom. Examples of assessments include but are not limited to compliance assessments, audit assessments and any kind of operational risk assessment.
Thanks to a very user-friendly interface, administrators and Risk Managers can easily create new assessments types without any IT support.
Among the most important features of the module:
- ability to navigate OpRisk Evolution’s flexible data model;
- ability to define several types of templates (SOX, Coso, Operational Risk) and decide to publish them in different sessions or in one single session;
- ability to create tailormade user questionnaires;
- total freedom for parameterizing your own score functions for each assessment template as well as your own methodology for aggregating results.
This module can be used to create indicators, e.g. Exposure, Risk, and Performance Indicators. The information needed to create indicators and to define alert thresholds can be defined via the user interface. A wide range of graphical models means that the presentation of indicators can be customized.
OpRisk Evolution’s Key Indicators Module (KIM) is probably the module that benefits the most from the OpRisk Evolution dynamic data-model. Indeed, there are virtually no limits on the kind of indicator that can be defined.
In addition, OpRisk Evolution’s generic import/export functionality makes for very simple data upload and download to populate any indicator.
KIM also features very flexible ways to define rules for field calculation, field refresh and threshold monitoring.
OpRisk Evolution’s Flow Chart Design Module delivers a drag-and-drop graphical representation of any object in the system. This functionality is particularly useful, for example, for representing processes and activities, simultaneously showing their associated risks and controls.
The flowchart is a real representation of data in the system, and is therefore synchronized with the database. System administrators can choose different shapes and colors for any object in the system.
The OpRisk Evolution reporting engine offers functionalities for a wide range of reports on data. The range of reports is extremely wide in terms of kinds of reports (from High Management synthetic reports, to detailed operational reports, even to real-time reports).
Reports are also available in a wide range of formats (Pdf documents, Excel and Word documents, application web pages, etc.)
The Reporting Engine Module has full access to the data of all the OpRisk Evolution modules, thus ensuring an easy cross-module reporting.
REM grants OpRisk Evolution users the freedom to design their own report templates, via three integrated reporting engines. Authorized users are able to design report templates and to determine who will be given access to them.
It is also possible to create graphical dashboards with a drag-and-drop interface and the very powerful Navigator Page, that is a way to quickly select parameters for graphical dashboards, reports, or to execute saved queries made by the user.
The three report engines supported are:
- Embedded Crystal Report Engine.
- Embedded Excel Report Engine.
- Matrix Report Engine.
