Method and apparatus for a processing risk assessment and operational oversight framework

摘要

A method and apparatus providing a linkage between and a measurement of the operational risk exposure to any company within the context of how that company creates value for its customers in the marketplace is presented. That is, the operational risk exposure to an organization is evaluated by looking at the various value creation continuum streams that the organization has, identifying the critical risk points within that value stream, and then assessing the risk of catastrophic incident on the value stream. A likelihood of failure and a worse case scenario are attributed for each one of the individual risk points. Such can be accomplished utilizing a “Monte Carlo” type simulation to determine the probabilities of what the worse case scenario is and what the revenue impact is from that worse case scenario, and what the most likely scenario to occur is and what the revenue impact is on that case scenario. Such numbers can then be aggregated across all of the value streams a company may have to determine what the capital calculation should be for operational risk and what capital should be held against such scenarios. In other words, in such calculations the key risk indicators are linked across the value creation stream.