Risk Map is a tool we use in the diagnosis phase of the InteDelta Delivery Lifecycle to pinpoint areas of weakness or to benchmark the institution against best practice. This enables us to plan an engagement to focus on the areas of greatest need.
Risk Map enables us to look an institution’s risk management environment across a variety of dimensions:
- Across the entire institution
- At the level of a particular risk class
- At the level of a functional area across all risk classes
- At the level of a specific functional area within a single risk class
We have developed a number of ratings to measure an institution’s risk environment in three different categories:
- Market practice – how does the sophistication of the institution’s risk management practices measure up against best market practice? This rating is based on our extensive experience of best practice within many financial institutions
- Efficiency – how efficient are the institution’s risk management processes? The rating is determined by examining factors such as the amount of manual intervention, degree of centralisation, number of systems and extensiveness of due diligence
- Assurance – how certain can the institution be that its controls will completely capture and mitigate risk? This examines, for example, the number of transactions which are not captured by risk systems, the accuracy of risk modelling, the effectiveness of risk committees, reporting and other risk controls
The ratings are determined by applying our diagnostic and benchmarking tool which has been developed from our extensive knowledge of financial institutions’ risk environments. The ratings take into account the size, complexity and product range of each institution to arrive at a rating that is appropriate to the institution’s particular circumstances.