1 Meycor Solution for Basel II Operational Risk Management.

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Meycor Solution Meycor Solution for Basel II for Basel II

Operational Risk Operational Risk ManagementManagement

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First Pillar: Minimum capital requirement (Meycor COSO AG, Meycor KP, Meycor Delphos)

Second Pillar: Regulation process

Third Pillar: Market discipline (Meycor COSO AG, Meycor KP)

The Pillars of Basel II The Pillars of Basel II

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MEYCOR Proposal - Stage MEYCOR Proposal - Stage 1: 1:

• Document the reality of the organization

• Identify operational threats

• Classify them according to their likelihood and impact

• Manage improvement measures for the controls.

• Audit review of the controls

MEYCOR Proposal - Stage MEYCOR Proposal - Stage 2: 2:

• Define proposals to improve the controls

• Design the Action Plans

• Manage Projects

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MEYCOR Proposal - Stage MEYCOR Proposal - Stage 33

• Meycor KP Events - Allows you to record loss events, defining a knowledge database.

• Meycor Delphos - Allows you to manage Key Risk Indicators (KPI) and to issue the corresponding alerts.

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Threats and Threats and Assessments ExamplesAssessments Examples

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Risk Assessment by AreaRisk Assessment by AreaIdentified Risk Consequen

ce (1)

Likelihood(2)

Controls identified for each

risk

Control Self-

assessment(3)

 Responsibility Area/Process: (Non-financial sector

credits) Credit Request

1 - Objective 1. Authorize credits according to the defined standards.

Risks:a) The information

submitted by the customers to request a credit is not authentic.

b)…c)…d)…

USD 100 to 200

Once a year The customer's information is verified by the Manager at the time of granting the credit.

Acceptable

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Risk AssessmentRisk Assessment by Areaby AreaIdentified Risk Consequen

ce (1)

Likelihood (2)

Controls identified for each

risk

Control Self-

assessment(3)

 Responsibility Area/Process: (Systems Management)

Systems Security

1 - Objective 1. Ensure Availability, Integrity and Confidentiality

Risks:a) External

Security Breaches

b)…c)…d)…

USD 1.000 Once a month

Firewall. Annual intrusion tests

Needs improvement. Install an intruder-detection software.

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Current Accounts

MortgagesBanking Credit

Cards

General Map with Controls

Risk MapsRisk Maps

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Registration

Transfers

Collection

Withdrawals

Customer Service

UAIRIT

Legal

Generate the documents necessary to report to Senior Management, Operational Risk Committee, and any areas involved.

OS for Operational Risk

Management

Record Loss EventsMeycor KP - Events

MeasureAssess

SR

KRI

Meycor Delphos

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Click here to see the Meycor Solution

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Customized Solution Proposals

We develop Risk Management methodologies, procedure

manuals, role definitions and more.

Contact us at [email protected]

Patria 716 - CP 11300 - Montevideo - Uruguay Patria 716 - CP 11300 - Montevideo - Uruguay Phone: (+598 2) 711-58-78 / 711-04-20Phone: (+598 2) 711-58-78 / 711-04-20Fax: (+598 2) 711-58-94Fax: (+598 2) 711-58-94