ORX Data

The ORX Global Operational Risk Database is the world’s largest operational risk loss data resource. At 31 March 2010 the Database contained 170,081 loss events to a total value of €58,000,000,000. The data that ORX collects is confidential. In general therefore ORX only makes data available to member institutions who contribute to the database.

 

ORX does make however publish a high-level data abstract - the ORX Operational Risk Report.  The Report is based on high-level ORX data and offers information on trends in loss data and the changes in the industry operational risk loss profile.

 

Click here to receive a copy of the ORX June 2010 Operational Risk Report. 

 

The remainder of this section offers a snapshot of the report content based on data up to 31 December 2007.

 

Table 1 below offers a snapshot of how the ORX Global Operational Risk Database has grown since inception. Growth in the database has tracked growth in membership. New member are however only requested to submit historical data which meets current ORX reporting standards. At 31 December 2007 the database contained 91,839 losses to a value of approximately €30,000,000,000.

 

Table 1: Overall Summary of ORX Data

 

Total

2002

2003

2004

2005

2006

2007

Total Number of Loss Events 

91,839

7,812

10,704

14,892

18,194

21,280

18,957

Total Gross Loss
(€ Mn) 

30,369

5,263

7,088

4,541

4,790

4,218

4,470

Total Gross Income (€ Mn) 

1,839,319

179,707

214,473

302,864

354,461

374,195

413,619

 

Figures 1 and 2 set out graphically the growth in ORX data by number of events (Figure 1) and by value (Figure 2). It is noticeable that whilst the number of events has steadily grown over the period the value has declined from a peak in 2003.

 

  Figure 2

 

 

Figures 3 and 4 present the distribution of events by size. Figure 3 groups losses by size into three buckets and Figure 4, using identically bounded buckets, presents the value of losses in each bucket.

 

 Figure 3 Figure 4

 

Table 2 offers a different perspective, presenting the frequency of events in the ORX database over a standard Business Line / Event Type matrix. For example approximately 64% (65,000 actual) of ORX losses are Retail Banking, approximately 10% (10,000 actual) are Trading and Sales

 

Table 2: Relative Number of Losses by Event Type by Business Line

 

Table 2

 

 

Table 4 utilizes the same matrix but maps losses by value. For example approximately 28% (€8.4 billion actual) of ORX losses are Retail Banking, approximately 14% (€4.2 billion actual) are Trading and Sales. The contrast, in the instance of some cells, between the frequency of events and severity, is striking.

 

Table 4: Total Gross Loss by Event Type by Business Line

 

 Table 4

 

 

The above offers the highest level overview of the data available in the ORX Global Database. More detail is available in the ORX Operational Risk Report (see above). Beyond this ORX does not make data available to non-members.