As your insurance advisor / risk management partner, our objective is to function as a valuable part of your organization – identifying risks, designing and implementing efficient risk management plans, and advising you regarding how developments in your industry and businesses may impact your risk profile.

Banking Operational Risk Management

" A Bank must have … a risk management system that is conceptually sound and is implemented with integrity and … must demonstrate that its operational risk measure meets a soundness standard".

- Paragraphs 620 & 627, Basel Committee on Banking Supervision Consultative Document, April 2003

Financial Institution Operational Risk Management is receiving more and more attention in recent years. This is stimulated by recent incidents due to operational risks that have caused huge losses and even bankruptcies. Also the stakeholders such as shareholders and banking supervisors are showing increasing interest in operational risks, as appears from trends like corporate governance and plans for shifting capital requirements by the Basel Committee.

The advantages of good operational risk management system can take the following form:

• Banking regulators and supervisors will recognize good risk managed practices through a lower operational risk capital charge
• Improved rating agency assessment
• Higher investor confidence and enhanced customer perception
• Use of sophisticated risk quantification models will enhance economic capital and capital allocation
• Create a sustainable competitive advantage
• Reduced cost of capital

Aon Global can provide the following services in the Operational Risk Management field:

• Framework design, assessment and implementation
• Data collection, assessment and management
• Quantification, methodology and tools
• Risk appetite / risk reward analysis
• Process management, de-risking and improvement
• Risk solutions design, build and implementation

This has been made possible due to Aon’s vast risk consulting, risk management and risk solutions resources that has been harnessed to create a ‘Global Operational Risk Practice’ providing banking and financial institutions clients with the integrated blend of skills and experience necessary to optimize risk management and capital efficiency.

We can also provide clients with accurate and relevant external loss data through a product called ‘OpBase’ which is a collection of over 10,000 actual loss events in the banking sector worldwide

Optimum Risk Financing

Insurance Solutions

Provide innovative insurance solutions

The combination of our expertise, size and influence in the marketplace will enable our clients to obtain the most appropriate insurance product and expert claims handling. Solutions for cover include Professional Liability, Directors and Officers’ Liability, Crime & Bankers Indemnity Policy, Transaction-related liabilities and many other specialized property and casualty products for professional and financial businesses.