ORX Launches Controls Library with McKinsey

ORX, a global association of operational risk professionals, has launched the first industry-wide library of controls for operational risk.

The Controls Library was launched with McKinsey & Company as a knowledge partner.

Based on control data collected from nearly 50 financial services companies, the Controls Library will help develop and shape standardized control practices across the financial services industry.

It contains a total of 761 typical operational risk controls and combines McKinsey and Company’s data science expertise with ORX member industry insights and is aligned with the ORX benchmark risk taxonomy.

The Control Library is designed to help organizations better understand and benchmark their own controls against industry practices to enable shared learning to provide insight into the effectiveness of their control environment. It will also save them time and money.

ORX Director of Research and Information Steve Bishop said, “Many of our members were spending a lot of time and money improving their controls and some had built their own control library. These internal libraries, which are based on one financial organization’s proprietary data and insights, are extremely valuable, but we saw an opportunity to take the collective data of 50 organizations to create an industry view.

“The library also creates the opportunity for industry control benchmarking, which is particularly important with operational and non-financial risk and control being a big topic on boardroom agendas. .”

The library is available as an interactive digital interface to allow users to explore connections, themes and patterns for maximum insight. It also contains a comprehensive list of controls and tips on how to use and interpret the data.

Last year, McKinsey & Company released a report on the top challenges facing financial firms in the face of the rise of central bank digital currencies. He focused on the four key areas he identified as CBDC and stablecoins, the evolution of global transaction banking, merchant acquisition, and the $100 billion small business opportunity.

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James V. Hayes