ORIC International is the largest and most established risk event database for the insurance industry. Membership of this consortium offers a holistic and comprehensive operational risk resource service providing tools that can be used internally to support our existing operational risk framework.
Risk Event Data
1. Consortium risk event data: Access to this database of risk events will give firms the ability to view the risk events that their peers have experienced providing a much wider view of the potential operational risk exposures that our firm is exposed to. Access to the risk event data analytics that ORIC provides enables firms to benchmark and challenge internal reporting.
2. Public risk event data: Members get access to a database of risk events from across financial service sectors, globally sourced from the public domain. This service enables firms to set up personalised, tailored email alerts when a risk event of interest enters the database.
3. Risk assessments frequency & severity estimates: By providing the business with details of external losses that have occurred in peer organisations, firms provide a frame of reference to inform more robust estimates.
4. Creation, input and validation of risk scenarios: Access to a scenario library as well as a set of benchmark specifications provides a source of input to scenario generation processes and promotes greater confidence in the completeness of internal scenario sets.
5. Scenario assessment benchmarks: Participation in ORIC International provides members with the opportunity to benchmark scenario assessment results with peers, which helps sense check and validate scenario assessments.
6. Scenario analysis assessments: By providing the business with details of external risk events associated with each storyline firms provide a frame of reference to inform more robust frequency and severity estimates. Members have access to a library of over 400 detailed scenario specifications that assist in the scenario selection and assessment process.
7. Scenario analysis best practice: ORIC International have developed an industry best practice guide that members use to challenge and improve internal processes.
Key Risk Indicators
8. KRI Programme: Members have access to a library of circa 2,500 detailed industry specific key risk and control indicators that assist in the review internal KRI programmes.
9. Operational Risk Model: The major benefit of any operational risk database is to support the development of a credible operational risk module within the internal model. There are signals from regulators and consultants that developing a model based only on scenarios runs the risk of internal models only securing partial model approval for the operational risk element.
10. Best practice and working groups: ORIC International membership provides firms with access to the latest operational risk capital modelling best practice and studies, and the opportunity to share and learn from others experience via industry working groups.
11. Emerging risks: Use of external loss data would complement firms’ consideration of internal losses and horizon scanning.
12. Emerging risk benchmarks: ORIC International membership enables firms the opportunity to benchmark emerging risk assessments with those of peers’ organisations.
Training, Awareness and Culture
13. Risk Management learning: Members are able to learn from other organisation’s losses and ensure they have controls in place that would have prevented or mitigated such an incident. ORIC issue research papers on best practice, scenario analysis and modelling to members.
14. Training courses: Members have access to heavily discounted training courses, run several times a year on topics such as operational capital modelling, ORSA, scenario analysis and the effective use of key risk indicators.
Industry Direction and Community
15. Forum for change: Members are able to participate in an insurance-industry forum in terms of influencing industry best practice. As a member of ORIC, firms can ensure that their concerns are heard while providing additional support and weight behind the consortium. There is no guarantee this would always be in favourable, but not joining would exclude them from the discussion.
16. Statement of Intent: Membership of an operational risk consortium signals to regulators and rating agencies that firms are taking this challenge seriously and are committed in the long-term to improving our performance. Rating agencies have signalled that they see membership as a step towards embedding enterprise risk management.
17. Influence: Membership allows firms to influence the direction of ORIC Internationals database development. ORIC are providing customised benchmarking services and monitoring capabilities. We would be able to influence the direction of future enhancements.
18. Member forums, working groups and events: Members are able to participate in quarterly member forums that are designed to keep risk professionals up to date with industry developments, working groups that focus on specific industry challenges and other events that are hosted or supported by ORIC International.