JPMorgan
Improving return on investment by enhanced management of operational risk and complying with Basel II regulations represent two of the key challenges facing banks today. JPMorgan is a market leader in managing and mitigating operational risk and a new operational risk event data system, developed with Wipro Technologies, is seen by The Banker as an important development in providing the best risk-management strategy. The new system is designed to achieve the following objectives:
- to be available enterprise-wide, on a global basis, for the purpose of capturing and analysing operational loss data;
- to operate on a web-based platform, enabling availability to any employee with intranet access;
- to be capable of easy integration with other risk management tools, as they are developed, such as a self-assessment tool and the firm’s economic capital engine;
- to have sophisticated reporting capabilities for analytics surrounding loss data.
- The following features make this solution innovative:
- thin-client, web-based technology, removing the need for installation of additional components or on-going desktop maintenance, and making the tool truly available globally;
- scalable architectural framework, enabling easy integration with other risk-management tools and ability to accommodate changing risk-management needs;
- ntegration with Business Objects reporting tool, which is seamless for the user;
- se of an onsite/offshore maintenance and operate team, enabling cost-effective 24/7 support .
This system, like JPMorgan’s previous risk innovations, such as RiskMetrics, is expected to become the industry standard and operate as a virtual utility within the risk-management universe.
