Algo OpVar Service

ELEMENTS

Algo OpVar Service elements are built on the proven Algo OpVar platform and are designed to share information, administrative, and management facilities with the software's integrated framework.

Internal loss event data (LED) collection
Algo OpVar Service's LED enables the collection, classification, and maintenance of operational risk loss events and their impacts within each of the institution's business lines. Events can be linked to risks or controls to highlight failures in the control environment, or as evidence for risk evaluation results.

Risk and control self assessment (RCSA)
RCSA's workflow-driven assessment process supports either a centralized or distributed assessment approach, allowing institutions to inventory key risks and controls, evaluate the level of risk and the effectiveness of controls, and then make decisions to mitigate residual risk.

Controls testing
As part of the assessment process, users can identify key controls, and test and capture test results that support the assessment results. Test procedures are stored in a library that is available across all assessments. Actual test results are captured as part of the assessment and guide in the scoring of control effectiveness.

Key indicators (KI)
The KI element enables the identification of key indicators and associated thresholds, so that the organization can monitor values and identify trends that might lead to unacceptable risk. Users can employ Algo OpVar Service's KI as a stand-alone measure, or in conjunction with RCSA and/or LED.

Structured Scenario Analysis
Structured Scenario Analysis is designed to identify, arrange, and present information - including internal loss data, relevant external loss event information, and key risks and controls identified during the RCSA process for scenario analysis - and then capture results of the analysis. Assessments can then be used to provide operational risk exposures as an input to capital calculations.