Risk Frameworks and Categorisation

Enterprise and Operational Risk Management, the cornerstones of Sarbanes-Oxley and Basel II, can only be effective if built upon the foundation of a risk classification framework tailored to the characteristics of the institution and applied in a consistent manner across the whole enterprise.

This framework will structure, document and apply numerical indicators to:

The framework can then be used to:

The Challenge

Each institution has to develop a risk framework tailored to its individual requirements. However, institutions often experience difficulty in reaching enterprise-wide agreement on a  framework that meets all identified needs.

Everyone is an expert when it comes to risk in their part of the organisation and everyone, left alone, would produce a very different framework of risks, controls, event and indicators and the numerical categorisation to coordinate these. There is a danger that this exercise alone can take many months of user discussions.

The DXL Solution

DXL has joined forces with Rawlings & Co to develop a structured modular framework designed to drive and support the activities of each institution in responding to this challenge. This is based on two linked components:

1. A pre-prepared template of a modular risk classification framework.

This integrates relevant elements from standard industry frameworks (e.g. COSO, AS/NZ 4360, British Bankers Association, the UK regulator as well as existing users) and consists of a core  plus industry-specific modules.

2. A structured workshop-centred approach for tailoring this framework. 

A fast-path approach combining consulting with two moderated workshop sessions to customise the above template to meet your institution's needs. It is designed to achieve buy-in across the organisation in the shortest possible time.

DXL's Risk Framework and Categorisation approach will accelerate the process of starting risk management and event collection. Out target is a few weeks rather than the many months that has been industry experience!

For further detail, please download this 151 Kb PDF attachment.

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Basel Roll-out Planning and  Training (224Kb)

Risk Frameworks & Categorisation (151Kb)

Sarbox Roll-out Planning and Training (227Kb)

The DXL Training Framework (512Kb)