Case Studies Case Studies

Situation

A leading NBFC engaged us to help them develop a robust, operational risk framework and to help them identify vulnerable areas. Due to the changing regulatory requirements, this was considered a must have.

The task was complex given the number of processes and different systems used cross multiple business lines. We had to review all existing processes, understand associated systems and suggest a suitable risk framework.

Reviewed existing processes and identified key gaps, suggested process controls and followed-up for implementation of the same across business lines. Built a risk register Identified key risks across processes and activities and prepared KRIs; Worked with the technology vendor for updating the modules and OR system roll-out. Uploaded risk register for all the products in the system. Reviewed and updated the OR Management charter of the organization. Constituted OR Management Committee and facilitated the conduct of the first ORMC. Undertook review of outsourcing policy and suggested constitution of an outsourcing risk management committee.

Outcome

Completed building the operational risk framework. We are happy we could deliver a robust framework and initiate corrective action for many processes where the residual risk was "High". Operational Risk is now embedded in the client's business processes. The client has also commenced detailed review of all their outsourced activities and vendors as recommended by us, in line with RBI's guidelines.