Boston, MA and New York, NY (October 12, 2005) â Basis Point Group, LLC (www.basispointgroup.com), the leading investment operations performance consultants, announce the introduction of their structured Operational Performance Evaluation and Risk Assessment (OPERA) methodology. The methodology offers a comprehensive, quantitative approach to drive operational improvements and extend the companyâs benchmarking framework for investment organizations.
"Basis Point Group (BPG) has developed, utilized and refined the methodology over the past nine years while managing complex client projects. OPERA has proven effective in evaluating operational risk, identifying actionable measures that improve front, middle and back office operations, and providing a sound basis for measuring the effectiveness of IT applications and systems. We have formalized the OPERA methodology following post-engagement discussions with senior executives from a number of firms. Our clients have endorsed our structured framework and it has already helped them to unify disparate operational performance and risk measures," said Bob Fawls, Managing Partner.
"The OPERA framework allows firms to quantify the effectiveness of overall operations, assess the transparency of operating risks, and determine the operational efficiency of their organizational and technical infrastructure. No two firms are exactly the same, each having differing combinations of people, processes and applications. OPERA utilizes information and data produced in the normal course of business, giving managers far more insight than was previously available," Fawls continued.
"The OPERA methodology allows firms to leverage recent investments in regulatory compliance and controls processes to deliver significant incremental improvements and actionable information to aggressively reduce risk," said Fred Sommers, the lead partner in formalizing the methodology. "We have drawn upon the depth of our partnersâ operational management experience to quantify the relationships between readily available measures, creating a continuous process control capability for investment management. Our partners understand the need for actionable results and OPERA fulfills this need."
"Investment is a continuous process. Current control, measurement and benchmarking efforts confirm that errors exist, and significant additional analysis is required to isolate the cause," said Sang Lee, Managing Director of the Aite Group, a Boston based financial services research firm. "OPERA recognizes the transaction-driven nature of investment and quantifies the impact on quality of investment, operations and financial decisions."
OPERA methods allow clients to isolate, contain and dramatically reduce processing risk, helping one BPG client eliminate costly processing errors totaling millions of dollars while reducing direct verification and controls cost by over 85%.
To create the first release of benchmarks using OPERA, Basis Point Group has combined information from a range of assignments with publicly available information. The firm plans to refine the methodology in order to provide a full solution: "Unlike technology-based research consulting firms that have recently come to appreciate the importance of operations measurement and benchmarking, the Basis Point Group partners draw upon their long histories of supporting senior management in the improvement of all aspects of their operations," said Jerry Martin, a Basis Point Group partner. "Hopefully, these firmsâ methods will eventually achieve the comprehensive measurement and decision capabilities that OPERA embodies."
BPG is inviting qualified industry firms the opportunity to review this proprietary methodology and benchmarks.