Challenges in Operational Risk Management Transformation
The common challenges in transforming Operational Risk Management Framework from Basic Indicator Approach to Standardized and Advance Measurement Approach is enormous. ORMA Architecture Inc. have not known any bank who transform from Basic Indicator Approach directly to Advance Measurement Approach. Rather, from Basic Indicator Approach, many banks setup & stabilize the first the infrastructure required of Standardized Approach for 1 to 3 years before transforming to Advance Measurement Approach. In going through the transformation the key challenges are:
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- Data Management
- Systems Integration
- Organizational Issues
- Staffing
- Technology Mix
- Communications
- Future-proofing of the system