The Pillars of Basel II • First Pillar: Minimum capital requirement (Meycor COSO AG, Meycor KP, Meycor Delphos) • Second Pillar: Regulation process • Third Pillar: Market discipline (Meycor COSO AG, Meycor KP)
MEYCOR Proposal - Stage 1: • Document the reality of the organization • Identify operational threats • Classify them according to their likelihood and impact • Manage improvement measures for the controls. • Audit review of the controls
MEYCOR Proposal - Stage 2: • Define proposals to improve the controls • Design the Action Plans • Manage Projects
MEYCOR Proposal - Stage 3 • Meycor KP Events - Allows you to record loss events, defining a knowledge database. • Meycor Delphos - Allows you to manage Key Risk Indicators (KPI) and to issue the corresponding alerts.
Risk Assessment by Area Identified Risk Consequence (1) Likelihood (2) Controls identified for each risk Control Self-assessment (3) Responsibility Area/Process: (Non-financial sector credits) Credit Request 1 - Objective 1. Authorize credits according to the defined standards. Risks: a) The information submitted by the customers to request a credit is not authentic. b)… c)… d)… USD 100 to 200 Once a year The customer's information is verified by the Manager at the time of granting the credit. Acceptable
Risk Assessmentby Area Identified Risk Consequence (1) Likelihood (2) Controls identified for each risk Control Self-assessment (3) Responsibility Area/Process: (Systems Management) Systems Security 1 - Objective 1. Ensure Availability, Integrity and Confidentiality Risks: a) External Security Breaches b)… c)… d)… USD 1.000 Once a month Firewall. Annual intrusion tests Needs improvement. Install an intruder-detection software.
Risk Maps Credit Cards Banking Mortgages Current Accounts General Map with Controls
Record Loss Events Meycor KP - Events Legal OS for Operational Risk Management Registration Generate the documents necessary to report to Senior Management, Operational Risk Committee, and any areas involved. Transfers Collection SR Withdrawals Measure Assess Customer Service KRI IT UAIR Meycor Delphos
Customized Solution Proposals We develop Risk Management methodologies, procedure manuals, role definitions and more. Contact us at email@example.com Patria 716 - CP 11300 - Montevideo - Uruguay Phone: (+598 2) 711-58-78 / 711-04-20 Fax: (+598 2) 711-58-94