Bringing a stack of data together in one library has be good news, here’s the word;
ORX, the global association of operational risk professionals, today launches a world first industry-wide Reference Process and Service Library for operational risk, developed together with McKinsey & Company as knowledge partner, and in collaboration with ORX’s global membership. Based on 60,000 processes and services submitted by 50 banks and insurers, it is the most comprehensive tool of its kind.
As financial services become increasingly digitalised and reliant on third parties and technology, the need for robust end-to-end (e2e) process management is more evident than ever. Regulation such as the BCBS Principles for Operational Resilience, the Digital Operational Resilience Act (DORA) in the EU, FCA PS21/3 Building Operational Resilience in the UK, or CPS 230 in Australia are intensifying the need to be resilient. As a result, firms need a clear understanding of their critical services and processes. The ORX Process and Services Library helps firms to rapidly accelerate development of this capability and acts as an invaluable benchmark.
Currently, most firms polled by ORX (84%) use a process library and 43% have developed service libraries, but few have connected these. The vision for most of ORX’s members is to have a ‘single source of truth’ with a mapping between key services and supporting process and in turn a clear link to risk and controls.
Banks and insurers can use their libraries to support:
- Risk identification and assessment: along the e2e process
- Control effectiveness: ensuring there are no gaps in the control environment along the end-to-end process.
- Control optimisation: supporting the standardisation, rationalisation of controls and control automation activity.
- Third party management: reviewing third-party activity across the e2e process.
- Process optimisation: enables process standardisation and efficiency activity – including the greater use of process automation and straight through processing.
- Organisational design: supports the design of organisational structures.
Luke Carrivick, Executive Director at ORX comments: “Members tell us that they are shifting to an e2e view of risk and controls as a key enabler to organisational resilience. In doing so, it is essential that they develop standardised views of processes and services for use within their organisation, designed to an optimal level of detail and granularity – which is a significant effort and challenge.
“Members are progressing on this journey, and agree that an industry-wide, standard view of processes and services will accelerate their work.”
The new ORX library consists of two separate but connected libraries – one focused on key business processes and the other on services.
“We are delighted to have partnered with ORX to develop the Process and Service Library, which will be a valuable resource for the entire financial services industry,” stated Daniel Mikkelsen, Senior Partner, McKinsey & Company
The launch of the library follows the introduction of the award-winning ORX Cause-Event-Impact Reference Taxonomy in 2020, the award-winning ORX Control Library in 2022 and the ORX Risk Indicator Library in 2023.
The ORX Reference Process and Service Library is available free to ORX members and also for non-member institutions to purchase on the ORX website.
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