Before developing the elanev Operational Risk Model our risk experts analysed 50+ industry op risk models and accompanying regulator feedback.
Before developing the elanev Operational Risk Model our risk experts analysed 50+ industry op risk models and accompanying regulator feedback.
Very popular with our challenger banking clients! The elanev OR model affords our clients the ability to assess pillar 2 capital in a simple, repeatable and real-time manner. Benefits from our experience of some 50+ industry approaches, rigorously vetted and cognisant of regulator feedback. Cheaper than either maintaining an internal solution or using other external vendors.
“As well as providing a practical model, elanev delivered support and training to ensure the technical aspects of the model were fully understood. elanev are also able to provide valuable insight from across the sector. We look forward to continuing to work with elanev in the future.”
Head of Operational Risk, Secure Trust Bank PLC.
“In addition to providing a market leading approach, elanev provide us with technical support and modelling insight as well as sharing their industry knowledge. Thanks for being so committed to our business.”
Senior Operational Risk Manager, OneSavings Bank PLC.
We not only provide clients with the elanev Operational Risk Model but seek to support the wider industry. We recently prepared a Pillar 2 Capital Benchmarking Survey for CROs and Heads of Operational Risk at leading UK challenger banks.
No IT change required – we deploy using our secure sotfware as a service (SaaS) approach.
No GDPR implication – no need for you to share personal identifiable customer information.
Save on OPEX – the elanev Operational Risk Model removes the need for internal model build and maintenance, helping you to keep associated costs to a minimum.
Experience the benefits of the elanev Operational Risk Model for yourself. Contact us to arrange for a no obligation demonstration. What’s more, you could be live with our full service within hours.
What is elanev Operational Risk Model? The elanev Operational Risk Model is an online tool designed to help you assess the capital associated with low frequency – high impact operational risks.
How is it accessed? The elanev Operational Risk Model is accessed via our secure online portal. We provide you with a simple template to capture model inputs and settings. Upload the template and get a detailed report returned in real-time. The report contains capital estimates, commentary and insights. Repeat the process as often as you like as the model is available 24x7x365.
What type of inputs does the model use? The model can be run using the results of your scenario analysis or from fitting to real data. A variety of modelling options can be selected within the template too. These are explained within an easy to understand technical document. We will support you with your initial set up and provide ongoing support. We also provide training and wider consultancy services as required.
What about our data? We do not store or back-up your data. It is only used to run the model.
Why should we use a model? Regulation requires firms to assess their operational risk related capital position as part of their ICAAP process. The capital held should be sufficient to cover low frequency but high impact events. Recognising that most firms have not experienced such large losses, regulation allows for the application of scenario analysis. Unfortunately, scenario analysis can be prone to uncertainty especially when assessing capital at the required low frequency but high impact levels. Typically, expert judgements overestimate more frequent risks and underestimate remote risk. Modelling scenario analysis outputs helps firms reduce uncertainty in their capital assessments. It provides a very effective mechanism for Risk teams to review and challenge judgements made.
What is the regulatory view on such models? Using the right scenario model to help in the assessment of Pillar 2 capital is viewed extremely positively by Regulators and meets their increasing regulatory expectations.
Is the model validated? Yes, the model is validated according:
1. The technical document contains a set of test batteries that detail the test we perform on the model and the corresponding results
2. The model results have been compared to those from an independent third-party model as part of a client take on process.
3. The model has been presented to regulators and has been party to numerous regulatory ICAAPs and SREPs. All returned successful.
4. The model methodology benefits from the knowledge and understanding of some 50 plus industry models mainly in the UK but also in the US and EU. This includes model design, build, implementation, development and internal, external and regulatory audits and reviews. Indeed, our OR expert supported the PRA in a series of OR model IMAPs. Importantly, we have been party to regulatory model feedback and corresponding responses. This placed us in a unique position to develop a market leading approach to operational risk scenario modelling that meets regulatory expectations in an easy to use and informed manner.
That all sounds expensive. Is it? We base our pricing on a fraction of a single operational risk modelling FTE which would be required to maintain an internal model. What’s more, our pricing is substantially less than that of a Big-4 Professional Services firm whilst our Operational Risk modelling insights are more extensive.
Do you provide operational risk consultancy? Yes, and we can provide wider consultancy services as required.