First 500 is an event database that is integrated with the KRI Library taxonomy of risks, processes and products and service types, and is offered using a common user interface. This sub-selection of the full Algo FIRST database is designed to appeal to institutions that would like to analyze external events suffered by other firms as part of their work on KRI selection, Risk Assessments (RCSAs and Risk Maps) and Scenario Analysis. In addition, it will assist present users of the Algo FIRST database who also subscribe to the KRI library to identify relevant risk indicators. The goal is to link a small subset of events in the Algo FIRST database to the KRI library in order to provide advance warning of potential operational risk issues. The First 500 event population has been targeted to match the most material risks identified by the KRI Library's subscribers.

"We have been looking at ways to extend the reach and use of the Algo FIRST external event database and to create linkages to key risk indicators." says Penny Cagan, Managing Director of Algorithmics and manager of the Algo FIRST product. "We are very excited about this joint effort as we believe it has enabled the development of a product that will enhance the use of external event data at a granular business line level". She added: "This is also a great opportunity to bring together two user communities and to expand the dialog concerning the management of operational risk."

Ed DeMarco, RMA General Counsel and Director of Strategic Planning, said "We are delighted to be able to offer this additional service to our existing KRI Library subscribers. We polled our subscribers in 2007 and this was one of the top additional services in which many subscribers expressed a strong interest".

"This initiative also brings together two of the parties that have had the largest impact on the development of a language for Operational Risks" DeMarco added. "RMA has tried to perform a pivotal role e in the development of industry language. By creating a language that works for both the corporate and business line communities, the value of the risk management discipline is enhanced beyond just regulatory compliance".

The First 500 event service was designed and developed by RiskBusiness and is based on the same internet platform that supports the KRI Library. It draws on interest and user requirements collected from both the KRI Services subscribers and other financial institutions globally. The Algo FIRST database and its case study methodology was developed by Penny Cagan almost ten years ago and is supported by technology developed by risk software vendor Algorithmics. It is a repository of over 8,000 case studies of corporate governance, compliance, strategic and operational risk events. Approximately 100 financial institutions subscribe to the Algo FIRST database - many of whom also are subscribers to the KRI library.

Jonathan Davies, RiskBusiness' Managing Director responsible for the Americas adds "Being able to bring together on a common framework all relevant risk data sourced from inside or outside the firm, is a fundamental requirement for the future effective management of operational risks. This includes: Loss Data (both internal and external), RCSA exposures, output from Scenario deliberations and KRI selection processes."

"Also as the operational risk community looks to bring value to related internal initiatives in Audit and Compliance, external event data is highly valuable in assisting these communities in determining risk levels and by association the requirement for greater or lesser levels of oversight".