Risk.net, a prominent digital publication focused on operational risk news and analysis, today awarded its 2020 Industry Initiative Award to the American Bankers Association and MSTAR, for their pilot program for operations risk modeling. ABA and MSTAR a risk mapping tool from French software provider Elseware, launched the risk modeling project at the beginning of 2019 to address the deficiencies in quantification methodologies, particularly for cyber risk.
Since then, the program has successfully demonstrated an alternative, forward-looking method for measuring operational risk. The new methodology incorporates expert input in quantification, produces a full distribution of forward-looking loss projections to better manage and mitigate loss exposures, and it is not based on a hard to interpret “black-box” approach.
“We are pleased to receive this prestigious award recognizing one of our most innovative risk management initiatives,” said ABA Chief Policy Officer Naomi Camper. “Through our risk modeling program, banks gain significant insight into their risk profiles, controls and risk mitigation effectiveness, which is essential for improving overall risk management.”