ORX Member Testimonies
Bank of America
Joining ORX in April 2004, Bank of America is a Basel II AMA mandatory bank under US supervisory guidance. The Bank implemented a loss distribution approach in 2004 for internal risk capital requirements. Due to the granularity of the Bank of America modeling approach, data sufficiency has been one of our primary concerns even though we currently have 6 years of internal data. We determined that ORX data is the perfect solution to supplement our internal data. The ORX data is comprehensive, collected in a consistent manner and subject to high standards for quality.
Use of the ORX data has allowed us to round out our statistical modeling requirements while providing an excellent benchmark for industry experience. One of the most pleasing aspects of our association with ORX has been the forum it provides for sharing ideas on approaches to data collection, classification and modeling.
Euroclear SA/NV
Euroclear was a founding member of ORX in 2002 and was involved from the outset in defining the standards and creating the framework.
Euroclear has experienced only limited operational losses but is acutely aware of the importance of high levels of resilience against, and preparedness for, more extreme eventualities. Our involvement in ORX has been very beneficial in enabling us to assess where our experience is typical or atypical and how to provide relevant evidence about the losses the company could face, particularly for economic capital modelling purposes. We value our interaction with other members, notably through participation in the working groups and our close involvement with the Quality Assurance working group, focusing on data abnormalities. The process around data management - submission, retrieval, quality checks of data etc. - was simplified with the implementation of the web-enabled operational risk loss data capture and analysis service in early 2009.
This continues to bring valuable data quality improvements to ORX members and specifically to Euroclear as an end user.
Scotiabank
Scotiabank joined ORX as a founding member in 2001. Since that time, ORX has grown from 12 founding members to the current membership of 52 banks, with additional banks committed to joining.
We value our membership with ORX. As a member, we have access to a continually growing database of loss events. This data enables us to conduct high level benchmarking of loss performance and analyses on modeling for operational risk. ORX has established loss event classification standards, improving the consistency of classification across members as well as the reliability of data.
Another key benefit of being an ORX member is that ORX provides a valuable forum for industry discussion amongst a peer group of banks, in the practice of operational risk management. The various working groups within ORX allow for sharing of knowledge and experiences, and provide opportunities to develop industry standards in areas of emerging practice.