Operational Risk Management Solution

Nexum Operational Risk Management (ORM) solution provides a structured and efficient approach to risk minimization, whilst offering a solid foundation for more responsive customer service. Banks and Insurance companies need to respond to events within extremely short timeframes, by empowering the right personnel with precisely the right data. Nexum ORM helps to register, resolve and control operational risk events effectively and quantifiably, using structures defined by international Basel II or Solvency II requirements.

Benefits for Risk management

  • Complete operational risk loss data
  • High employee involvement
  • A step to Basel II or Solvency II compliance
  • Accurate risk estimation
  • Improved efficiency of risk department

Benefits for Company Management

  • Stable core operations and improved customer service
  • Lower operational risk
  • Appropriate capital set-asides adjusted to the actual level of operational risk
  • Reduced administrative costs

Accurate and complete loss and incident data

  • Loss information comes from the origin of the incident and at the time of occurrence
  • It has a balanced level of description details for every operational risk event
  • The database accumulates explicit and implicit loss information
  • Accounts all events – from small to large
  • Multiple levels of event categories

Numerous sources of operational risk events

  • Employees report incidents
  • Customers submit claims
  • Other internal and external systems or parties pass incidents or loss warnings to the Nexum ORM for loss registration and prevention

Compliance

The collected data is needed to qualify for the Advanced measurement approach under Basel II or for the use of internal model under Solvency II.

Operational Risk database for reporting

Wide range of reports can be generated because of well documented loss database structure optimized to store operational risk data. Any kind of existing reporting tools from excel to sophisticated analytical software can be used to produce reports from the database on demand or based on predefined schedule.

External loss data exchange

Prevailing standards were kept in mind while building Nexum ORM loss data model. Therefore the product is ready for external loss data exchange.

Simplicity and availability for every employee

Incident reporting is easy and fast for regular employees because of very straightforward Web forms to report incidents which can be accessed virtually from any place within a company. Reporting functionality can be also integrated into existing intranet portals, help desk systems, internet bank systems, insurance portals or any other system.

Risk analysts get sophisticated tools and interfaces to collect loss information while classifying, routing, controlling and closing incidents.

Structured and automated process

Nexum ORM Example Process:

  • No lost incidents because of automated and visualized step-by-step instructions for incident registration, resolution and closure
  • No misaddressed incidents because of automated role-based incident routing and workload distribution. The incidents are automatically forwarded for resolution based on event type
  • No forgotten tasks or missed deadlines because of automated task deadline control and escalation
  • Focus on critical events first by automatically assigning incident priorities based on company specific operational risk heat map
  • Short incident closure time because of built-in electronic tasking and paperless operations

Architecture

Nexum ORM can be easily integrated with existing applications or external systems because of Service Oriented Architecture in its core.

The system is powered by the leading Business Process Management platform Ultimus BPM Suite to define, automate and execute ORM process.

Web-based nature of Nexum ORM ensures it can be used in any user environment

Infrastructure

Client: Web browser
Server: Windows Server, Ultimus BPM
User Authentication: Active Directory, LDAP or Custom directory
Database: Microsoft SQL or Oracle

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