With constructs such as Basel II taking the center stage of public debate and increased merger and acquisition activities, accurately assessing operational risk and using it as a basis for pricing assets has become critically important to not only companies and investors, but regulators and insurers as well.
VCI has created a comprehensive operational risk assessment framework based on years of research and consulting engagements. Our framework takes proven concepts from well-established frameworks, such as the Enterprise Risk Management concept by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and Control Objectives for Information and related Technology (COBIT) by Information Systems Audit and Control Association (CISA), and integrated them with new concepts, such as quantitative approaches we have developed during the course of our engagements. Our risk-based approach to operational assessment is useful for the following set of clients and situations:
Mortgage Servicing Quality
Regulators, investors, insurers, GSEs, and advocacy groups are collectively placing a bulk of the blame associated with the foreclosure crisis squarely on the shoulders of servicers. Servicers will have to meet the challenge by conducting an accurate analysis of their operations. Our framework and tools allow services, regulators, and other stakeholders to quickly identify broken systems and processes so that appropriate controls can be implemented.
Operational Risk Analysis For Mergers And Acquisitions
Accurate identification of operational risks and their quantification are critically important to would-be investors in assessing a company’s true value. VCI’s hierarchically structured framework allows assessments to be conducted at the level of detail desired by the client. If more in-depth reviews are required, only those areas linked to the area under question need to be assessed. This approach allows rapid and cost-efficient assessments without sacrificing the quality of analysis.