The Kalypto Operational Risk Module (KORM) is a comprehensive solution designed to assist banks and financial institutions in establishing multiple lines of defense to safeguard public money and assets, while maintaining high operational standards to meet stakeholder expectations. Here's how KORM helps institutions manage operational risk effectively.

Operational Risk Incident Register

Kalypto Operational Risk Module (KORM) facilitates the collection and management of operational risk incidents through an Incident Register. This register serves as a post-facto incident logging mechanism, allowing institutions to track and analyse incidents that occur within their operations.

Key Features

  • Logging of risk incidents by all personnel of the institution.
  • Classification of incidents based on the institution's policy, often aligned with COSO or BASEL guidelines.
  • Supervisory review by control departments from the Head Office to ensure consistency and accuracy in incident reporting.
  • Capture of monetary losses associated with incidents, as well as tracking of recovery efforts.
  • Setting up Corrective Action Plans with definite deadlines to address identified issues and prevent recurrence.
Risk Control & Self-Assessment Policy (RCSA)

Kalypto Operational Risk Module (KORM) also facilitates the automation of Risk Control & Self-Assessment Policy (RCSA), which serves as an ex-ante operational risk defence utility. The RCSA framework covers various aspects, including:

  • Creation of Risk Libraries listing business processes, associated activities, and risk elements.
  • Identification of risk events, sources of risk, categories of risk, risk controls, and Key Risk Indicators (KRIs).
  • Mapping of risk elements to business processes and associating them with operating units (business verticals and support functions).
  • Definition of assessment periods with submission deadlines for self-assessments.
  • Submission of self-assessments with ratings for inherent, control, and residual risks.
  • Identification of control deficiencies and submission of Risk & Control Action Plans.
  • Assessment of overall ratings for operating units and approval of Action Plans.

By leveraging Kalypto Operational Risk Module (KORM), banks and financial institutions can streamline their operational risk management processes, enhance incident reporting and analysis, and proactively identify and address potential risks, thereby strengthening their operational resilience and maintaining stakeholder trust.