MKIRisk plans to offer a new Operational Risk solution to complement its current Risk Vision suite of products, which covers all the major risk categories, namely Market, Credit and Liquidity risk, in addition to Global Limits management. Having signed a Marketing Agreement with Amelia Financial Systems Ltd. for its new Operational Risk System, OR2Q, MKIRisk now has global sales and marketing rights to the solution, which is planned to become an integral component of Risk Vision. OR2Q (Operational Risk Qualitative and Quantitative) is a powerful web-based solution that as its name suggests, addresses both the procedural and quantification aspects of operational risk.
Joanne Shun, MKIRisk's Product Marketing Director says, "We see a great deal of synergy between Amelia’s product offering and the MKIRisk applications and we intend to offer OR2Q as an integral element of our total risk package. An integrated approach will enable MKIRisk to provide a single risk, data source and common delivery format that will augment our risk adjusted exposure, performance, regulatory and economical capital allocation capabilities."
She goes on to say, "MKIRisk has world class risk analytical engines based on a fully open, flexible and robust technical architecture. This will provide quantitative capability in conjunction with the qualitative approach of the Amelia product, as banks move towards satisfying the Basel II requirements."
Gerry Wilkinson, Amelia’s Product Development Director believes that under the agreement, OR2Q will gain valuable additional exposure to a worldwide delivery channel through MKI's network of 33 offices, grouped into 5 geographical regions, each with specialist risk sales and support groups.
With regards to the product, he says "We have adopted a very pragmatic approach to the development of our system, using industry accepted rapid application development methods and a sound systems architecture based on Enterprise Java Beans (EJB). We are helping financial institutions introduce a risk awareness culture throughout their organisation, providing modelling scenarios for the impact of catastrophic events on the organisation as a whole, plus quantification options for analysing the risk events within the risk control paradigm."
As with its previous generation product, ORCAS, which has over thirty major clients, Amelia has embraced a Risk-centric holistic approach to Operational Risk management which enables organisations to successfully direct resources towards key Controls, high residual Risks and the formation of corrective action plans. OR2Q will continue to build on this approach, which up to now has concentrated on the qualitative domain, by incorporating leading analytical methods such as those provided by Risk Vision into the system. Together, MKIRisk and Amelia intend to spearhead a movement towards more objective quantitative measures for Operational Risk Management, in preparation for capital allocation, while refining and improving existing qualitative measures.