Deregulation
and globalization of financial services, changing products and
services, growing sophistication of financial technology,
automation of internal processes, changing markets and
business volumes, pressure for achieving cost effectiveness,
increasing customer expectations, occurrence of unexpected
events etc., have created a variety of Operational Risks for
banks. These factors, interalia, could cause Operational Risk
events such as, internal and external frauds, fiduciary
breaches, confidentiality violations, business disruptions and
system failures, errors, litigation etc., which could
potentially result into substantial losses to the
Bank.
Unlike
Credit Risk1 and Market
Risk2, Operational Risk arises in the
natural course of the bank’s business with no directly
attributable expected returns, and failure to properly manage
Operational Risk can result in a misstatement of the bank’s
risk/return profile and expose the bank to significant losses.
The Operational Risk sometimes translates into Credit Risk or
Market Risk and contributes to losses. Therefore a clear
understanding of what is meant by Operational Risk is very
critical for effective management and control of this risk.
Operational Risks are at times not very clearly discernable
from Market and Credit risks and its assessment is dependent
on considerable qualitative and subjective factors effecting
the entire organization, which is highly complex and
challenging. However, the advantages of putting a proper
framework for identifying, assessing, monitoring and
controlling Operational Risk are manifold including mitigating
risks instantaneously and controlling losses, improving the
image of the Bank and its external rating (rating agencies
will reckon Operational Risk approach of the Bank also as an
important parameter), improving operational efficiencies, cost
reductions, better customer service and effectively measuring
capital for Operational Risk.
In
line with our expertise in security systems which is a major
area of Operational risk, ROCSYS has engaged into developing
Operational risk management solution applicable to banks and
other organizations, as per Basel II / SOX guidelines.
The
need for Operational risk identification, measurement,
monitoring and control, in every organization, especially in
banks, has become more pronounced in the recent times and some
of the driving factors are the
following.
- Changing
products, processes and services
- Business
volumes and competition
- Pressure
for achieving cost
Effectiveness and performance
targets
- Unexpected
internal and external events
- Regulatory
guidelines such as
- Basel
II / SOX and compliance
- Image
of the organization and rating
- Capital
allocation (banks)
Keeping
in view the above requirements, a team of professionals in
risk management, statistics and mathematics, banking,
insurance, IT and systems security have developed a web based
state-of-the-art solution for monitoring
Operational risk in a methodical way.
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Small Medium Enterprise Communication
& Managed Solutions
Managed
solutions addressing Network, Security & Voice
Small
to Medium Enterprises have to get connected to Internet and
have good ERP systems, applications like CRM, SCM with good
network security in place to leverage the opportunities
emerging in these Globalizes economies. As a result of this
they have to deploy cutting edge technologies on par with any
large enterprises with good IT team in place to manage the
networks and systems. Since their budgets are always short of
the needs, they prefer to look for cost effective solutions,
preferably on OPEX basis.
OzoneTel,
a ROCSYS group company, partners with various vendors in
Networking, Security, Voice to offer managed services on Opex
basis so that SME do not have to invest upfront. This also
takes away the head ache for ME to managing their network
& application needs on their own by dedicating a team of
Network, Security, Voice and application specialists, which
are hard to find & retain
them.
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