Raft International explains the design, development and implementation issues addressed during the creation of a new, global operational risk management system for investment bank Dresdner Kleinwort Wasserstein.
The browser-based system, which runs on DrKW’s corporate intranet, is a rules-based workflow oriented solution which maps the bank's corporate structure, geographic spread, business processes, product structure and control environment into a fully automated loss measurement and management solution.
The software consists of a number of server-based components, written in Java, with Microsoft's SQL Server 2000 as the database repository. The application server is available either under Unix, as at DrKW, or Windows NT/2000.
Jonathan Howitt, director of operational risk at Dresdner Kleinwort Wasserstein in London comments: "We went live with Radar, our name for the application, in London in December 2000, and subsequently this year in Frankfurt, New York, Hong Kong and Tokyo. As well as sales, trading, and settlement errors, the system has also been rolled out to various support activities for more generic incident capture purposes."
The global implementation means that all loss data is centrally available within the bank’s risk control group as soon as it is recorded, he says, as well as facilitating a consistent global measurement and management approach. The next phase of the project, scheduled for completion in Q1 2002, will add key risk indicator functionality.
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