Operational Risk Management

The ORM module provides comprehensive Operational Risk Management including the Basel III-aligned Dashboard, RCSA (Risk and Control Self-Assessment), KRI Monitor, Risk Taxonomy, Incident Management, Risk Appetite Framework, Scenario Analysis (Monte Carlo simulation), FAIR Risk Quantification, Bow-Tie Analysis, Knowledge Graph, Operational Resilience Engine, and Governance & Reporting — all fully integrated and audit-ready.

The platform is built around Basel III's 7-element operational risk framework. The dashboard monitors SMA (Standardized Measurement Approach) capital charges in real-time. Incident management uses Basel III loss event taxonomy. Risk taxonomy aligns with Basel event types. Scenario analysis feeds into regulatory capital calculations. All reporting templates are pre-built for Basel III compliance.

FAIR (Factor Analysis of Information Risk) is a structured methodology for quantifying cyber and operational risk. The platform calculates Threat Event Frequency, Vulnerability, Loss Event Frequency (LEF), and Loss Magnitude (LM) to derive Annualized Loss Expectancy (ALE) and Value at Risk (VaR). Monte Carlo simulation provides probabilistic loss distributions with confidence intervals.

The Knowledge Graph is an AI-powered visualization engine that maps relationships between risks, controls, incidents, KRIs, and business processes as an interactive network graph. It identifies hidden dependencies and causal chains that traditional tabular views miss. Cluster analysis reveals correlated risk groups and cascade failure paths across business lines.

The Scenario Analysis engine supports Monte Carlo simulation with configurable frequency and severity distributions (Log-Normal, Poisson, Pareto), correlation modeling, and stress testing with historical, hypothetical, and reverse scenario types. Multi-scenario comparison provides capital impact analysis, VaR calculations, and regulatory capital adequacy assessment.

The engine maps Important Business Services (IBS) with dependency chain visualization, defines impact tolerances, models disruption scenarios, and tracks recovery capabilities. It integrates actual incident data for continuous resilience validation. Breach analysis identifies where impact tolerances are exceeded, and remediation workflows drive improvement actions.