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Accenture Deriving Value Risk Control Self Assessment
Accenture Deriving Value Risk Control Self Assessment
Accenture Deriving Value Risk Control Self Assessment
Basel requirements call for regular, independent evaluations of a banks policies, processes
and systems related to operational risk as part of the assessment of the framework.
Characteristics of Value-Added
RCSA Programs
There is no single correct
way to complete a RCSA,
and the approach will
vary depending on the
culture, structure and
goals of an organization,
but there are commonly
observed best practices
that organizations deriving
value from the process are
implementing and that are
helping shape the profile
of the next generation of
RCSAs. While these are
based on experiences at
leading edge banks they
are applicable to anyone
conducting RCSAs.
1. Effective RCSA
Programs do not Exist
in a Vacuum
The RCSA program should act as
the crossroads for all initiatives
under the firms operational risk
program. Risk metrics such as key
risk indicators (KRIs), internal loss
events and external events should
contribute to the risk identification
process ensuring the organization
has considered all readily available
data and keeps assessment owners
honest. Many organizations are
also adopting standard language
or taxonomies to help define the
organizations processes, risks and
controls, to increase data transparency
and allow for aggregation of data
across assessments. As an additional
benefit, an organization that defines
these standard libraries is often able
to map RCSA data to other programs
such as loss event data and audit
items, among others. This allows
opportunities for additional analysis on
the data and can enable management
to take a broader view on risk and
issue management across the firm.
2. A Complete View of
Risks and Controls
Completeness is important to
performing more value-added
analysis later in the RCSA program.
For example, gap analysis for the
control environment is complete
only if all key risks and controls have
been identified. The RCSA program
should account for all information
revealed through internal audits,
Matters Requiring Attention (MRA),
3. Clear Methodology
for Trend Analysis
A properly implemented RCSA
program should recognize patterns
indicating undue concentration of
risk or potential control failures.
Time series analysis can establish risk
impact trends and highlight whether
controls in place actually reduce
residual risk impact. Trending analysis
can also be conducted around control
environments and/or suites of controls.
By aggregating the suite of controls
related to a particular risk, the
effectiveness of the controls can be
assessed as a group and improvements
can be made to the overall suite
rather than to individual controls.
4. Method of Identifying
Non-Financial Risks
Generally losses that relate to dollars
and cents are forefront in the minds of
business unit managers; however, the
impact to reputation or of regulatory
violations may, at times, far exceed
the true dollar loss. A strong RCSA
program will have a methodology for
identifying and quantifying the risk
impact of these non-financial events,
and will guide assessors to consider
the current political and regulatory
environment as well as other topical
considerations in the marketplace.
Challenges
Potential Solutions
About Accenture
Management Consulting
Accenture is a leading provider of
management consulting services
worldwide. Drawing on the extensive
experience of its 16,000 management
consultants globally, Accenture
Management Consulting works with
companies and governments to achieve
high performance by combining broad
and deep industry knowledge with
functional capabilities to provide
services in Strategy, Analytics, Customer
Relationship Management, Finance &
Enterprise Performance, Operations, Risk
Management, Sustainability, and Talent
and Organization.
About Accenture
Accenture is a global management
consulting, technology services and
outsourcing company, with more than
249,000 people serving clients in
more than 120 countries. Combining
unparalleled experience, comprehensive
capabilities across all industries and
business functions, and extensive
research on the worlds most successful
companies, Accenture collaborates
with clients to help them become
high-performance businesses and
governments. The company generated
net revenues of US$25.5 billion for
the fiscal year ended Aug. 31, 2011. Its
home page is www.accenture.com.
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