Source: Basis Point
Basis Point Group, the leading global investment operations performance consultants, announces OPERA - BASEL II, applying its landmark operational metrics methodology, OPERA, to Basel II operational risk measurement requirements.
Basis Point Group's (BPG) approach allows banks to better assess on-going operational and process risk using information generated in daily operations. OPERA - BASEL II provides a more accurate, activity-driven calculation of capital allocations for operational risk.
"Basis Point Group's OPERA BASEL II risk assessment process provides a more definitive method for assessing operational value at risk. OPERA(TM) BASEL II is a new approach that complements the current actuarial methods for operational risk measurement in the Basel II guidelines," said Francis Sullivan, London-based Partner of the Basis Point Group.
The metholody was developed in response to banks' limited ability to monitor and manage operational risk using current insurance and actuarial-based loss history methods traditionally used to track losses. Methodologies that assess the possibility of 'losses resulting from inadequate or failed internal processes, people and systems or from external events,' have to date lacked a direct link between actual processing risk and the probability of loss. OPERA BASEL II provides that link, utilizing data generated in the normal course of business to better identify and manage operational process risk. A four-level calculation process provides key events indices that identify processing "Hotspots" while tracking the organization's effectiveness, transparency and efficiency.
"OPERA allows an organization to determine what is actually happening and presents performance and risk in quantitative terms to allow corrective action using the same data to determine operational capital requirements," said Fred Sommers, Boston-based partner of the firm.
"Working directly with clients, Basis Point Group has refined the application of OPERA's measurement framework to improve operating performance. Our OPERA methodology allows management to understand the effect of their organizational, process or technical decisions and act to assure that they do not degrade quality or raise the risk in operational processing," said Bob Fawls, Managing Partner of the Basis Point Group.