is a web-based environment that provides a set of related subscription services designed to enhance a business’s
ability to identify and monitor real-time risk metrics via an embedded KRI Framework. KRIeX includes an industry generated Library
of risk indicators KRI Library
; an on-line service to support the collection, aggregation,
and management of risk indicators across a corporation KRI Monitoring
; and a benchmarking
platform for internal or external (peer group) comparison KRI Benchmarking
RiskBusiness publishes new variant of banking taxonomy
RiskBusiness International Limited, the leading international operational risk advisory and solutions firm, today announced the release of a new risk classification taxonomy which differs significantly from the aging Basel II loss event type structures.
Having won industry awards for the various iterations of governance, risk and compliance classification taxonomies it has created over the past decade, the new taxonomy, the RiskBusiness Banking Taxonomy Variant 4, reflects 3 major changes from previous taxonomies, namely a completely remodelled risk category framework which differs markedly from predecessors which all retained links to the Basel II loss event type structure; a granular, multi-level causal type model; and a new, granular control type structure. Additional enhancements have been made in the arrears of process types, direct and indirect impact types, recovery types and in the addition of a new exposure driver hierarchy.
The RiskBusiness Banking Taxonomy Variant 4 joins its predecessors, which include several insurance taxonomies, financial services enterprise risk taxonomies and other, non-financial services taxonomies in the web-based RiskBusiness Taxonomy Service, a subscription-based service. Subscribers can browse the various taxonomies provided, use components of different taxonomies to assemble their own taxonomy or can create their own bespoke taxonomy from scratch, then map their own taxonomy to any other industry taxonomies provided, including Basel II.
The Library also includes a risk analysis framework that allows a subscriber to view and navigate the content via product/service
risk profiles as a means of identifying key areas of operational risk exposure within the firm. These risk profiles map exposures to
individual operational risk categories within various business processes on a risk point basis and represent inputs from more than 70
firms globally, creating "industry risk profiles"
. The KRI Library has benefitted from broad industry participation and
input. It is structured by industry type, with financial services covered in detail, although much of the core content is applicable to any
corporation. It constitutes a widely accepted standard in terms of the taxonomy of risk embedded in the framework, how content is accessed
and analysed, and in the specific content of each metric record.
has introduced a companion service to the KRI Library, the Scenario Library, which employs the same structured
framework for identifying areas of operational risk exposure affecting the international financial services community. Subscribers
can now use the KRIeX industry risk profiles
to identify, risk point by risk point, historical public loss events which can
assist the firm in evaluating whether the specific form of risk could adversely affect it; KRIs to measure and monitor its current
exposure to that risk; and now, scenarios to assess potential future worst case exposure.
The KRI Library is a living repository, with additional metrics being added on an ongoing basis, both resulting from peer group
workshops facilitated by RiskBusiness
and from suggestions and proposals from subscribers. Ongoing research is focussed on
assessing which indicators are the most appropriate for specific risk points by product/service area within the different major
financial services business lines as well as incorporating the control type and causal classification elements of the
Taxonomy Service into the KRI Library.
For more information on the KRI Library or any related RiskBusiness
Service, contact us at info@KRIeX.org