OPERATIONAL RISKS

In a first phase, to be carried out together with the client, processes, sub-processes and activities are identified. Within each activity, the different operational risks are identified and listed. Each operational risk must have two main characteristics: frequency and size. The latter metric can be expressed either as actual cost or as man-hours. When the entire work of mapping and census of operational risks is completed, it will be possible to estimate the impact of operational risks on assets through simulations that adopt different probability distributions depending on the nature of the operational risks surveyed. In addition to what has been described above, the employees of the company/pension fund will have to detect any event related to operational risks through the tool at their disposal.

At the end of each detection period, Nummus.Info will calculate statistics on what the customer has detected and what has been estimated, so that the estimates can be recalibrated to the actual data that has occurred. Within a few periods, the estimates should converge with what was detected and thus have a very accurate forecast of the future.

Thanks to operational risk management, it will be possible to identify which processes, areas, and activities are most affected by operational risks and then go and intervene precisely at those critical points that make the process or activity inefficient.