Benefits

By staying up to date with industry events, subscribers to FIRST can proactively apply 'lessons learned' to prevent losses before they occur. Insights can also be used to help reduce investment risk and generate scenario-based discussions between risk and compliance officers, internal auditors and senior management.

Minimizes risk exposure

By proactively applying 'lessons learned', financial institutions can enhance internal controls, reduce investment risk and improve new product research processes before losses or exposures occur.

Improves understanding of potential exposures

Case studies are easily shared between departments, providing valuable content for internal newsletters, management reports and discussions, self-assessment workshops and scenario-based models. As an ASP-based solution, users across an organization can access one operational risk solution without additional infrastructure cost.

Enhances trend analysis

Firms gain the ability to examine commonalities among a series of events and to track emerging patterns. By benchmarking internal loss history against the event experience of peers, organizations can also improve their competitive insights.

Reduces investment risk

Improve new product research processes by identifying potential risk exposure by product type, so the right controls can be put in place. Management can also reference Fitch's ratings, liked to the timing of events, to see if there are contextual understandings of how events may have impacted the cost of capital.

Increases access to relevant insights

Algorithmics' operational loss event specialists have a background in financial analysis. This experience ensures that they understand which loss event details are relevant to financial institutions and that these insights are passed along to subscribers.

Related Downloads

The Replication Game

How ING put together a portfolio replication and economic capital calculation system for its global insurance business within two years.

Life & Pensions, April 2007. *Reproduced with permission

Cive Davidson

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