ORIC Chooses CCH Sword for Its Operational Loss Database
The Operational Risk Consortium (ORIC) has teamed up with CCH® Sword to upgrade its web-based IT platform to capture, aggregate and analyze operational loss events in the insurance and investment industry. ORIC was created by the Association of British Insurers (ABI) in 2005 to help insurers share industry-wide data on operational losses, with a view of improving their measurement and management of operational risk. ORIC has grown over the years, and currently has more than 20 members. CCH Sword is a leading developer and supplier of operational risk control solutions to the global financial services sector and a part of CCH, a Wolters Kluwer business.
“Gathering good-quality operational loss data is a major challenge for the insurance industry – perhaps more than in banking,” said Mariano Selvaggi, Director of ORIC. “We therefore believe this world-class IT platform will greatly enhance our members’ data collection and reporting systems, not only for modelling purposes but also for their scenario analysis exercises. Sound operational risk measurement and management play important roles in the European Solvency II Directive, so we are already flexing our muscles ahead of its implementation in 2012.”
ORIC’s powerful reporting and graphical tools help members visualize risks, analyze trends and predict loss outcomes. ORIC data is used to benchmark individual firms relative to the whole industry or selected peer groups. It can also be used for more sophisticated statistical analysis, such as internal modelling of operational risk under the Solvency II Directive.
The CCH Sword platform will be rolled out to new ORIC members automatically, which will facilitate seamless integration of IT processes and early alignment of classification standards. Both features are expected to be especially appealing to insurers located outside the United Kingdom.
“CCH Sword is a leader in managing operational risk and we are pleased to have been selected as a partner by ORIC. We look forward to best serving professionals’ needs in this critically important area,” said Mike MacDonagh of CCH Sword.