Operational Risk

Increasingly, financial and commercial companies view their risk management as a whole, combining both insurance and internal measures. Drawing on its experience, FLUX assists in implementing a corporate wide approach to the problem that encompasses all aspects of operations. This includes advise on the appropriate organisational structure, responsibilities, policy guidelines, systems and reporting within cost effective framework.

Operational Risk Under Basle II

Risk Management Strategy

Development of Internal Control Policies and Procedures

Physical Security

Management Audit

Management of Trading Risks

Implementation of Sarbanes-0xley

With the passing of the 2002 Sarbanes-Oxley Act in the USA and the ongoing Basle II initiatives, there is a growing need for clients to clearly document and evaluate controls through appropriate procedures and guidelines. Over time, FLUX has developed policies covering a number of key domains for leading financial institutions and commercial companies. These include information security, ethical standards, operational controls, product introduction, research and development or physical security.

The introduction by of the Basle Committee of new guidelines in respect of operational risk within the "Basle II" directive will require banks to re-assess their operational controls, amongst other. The Operational Risk Directive (ORD) puts forward two key concepts. Firstly, the introduction of a capital charge for operational risk and secondly the implementation of a framework for effective management and supervision of operational risk (defined as "identification, assessment, monitoring and control/mitigation of risk"). Within FLUX, we have brought together the different competences of our company to provide a relatively low cost automated solution to the challenges presented by the ORD. This solution, which is based on a tried and tested methodology and existing technology, is specifically aimed at small and medium sized banks.