ORX, a global association of operational risk professionals, has launched the world’s first industry-wide Controls Library for operational risk.
The Controls Library was launched together with McKinsey & Company as knowledge partner.
Based on control data collected from nearly 50 financial services firms, the Controls Library will help develop and shape standardised controls practices across the financial services industry.
It contains a total of 761 typical operational risk controls and combines the data science expertise of McKinsey and Company with member industry insight from ORX and is aligned to the successful ORX Reference Risk Taxonomy.
The Control Library is designed to help organisations better understand and benchmark their own controls against industry practice to enable shared learning to provide insight into the efficiency of their control environment. It will also save them time and money.
ORX research and information director Steve Bishop said, “Many of our members were spending significant time and money on improving their controls and some had built their own Control Library. These in-house libraries, which are based on a financial organisations’ proprietary data and insight are extremely useful, but we saw an opportunity to take the collective data of 50 organisations to create an industry view.
“The library also creates the opportunity for industry control benchmarking, this is particularly important with operational and non-financial risk and control being an important topic on boardroom agendas.”
The library is available as an interactive, digital interface to enable users to explore connections, themes and patterns for maximum insight. It also has a full controls list and guidance on how to use and interpret the data.
Last year, McKinsey & Company released a report on the key challenges financial companies are facing from the rise of central bank digital currencies. It focused on the four key areas it identified as CBDC and stablecoins, the evolution of global transaction banking, merchant acquiring and the $100bn opportunity in small business.
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