We're delighted to announce that we've launched a world-first industry Reference Process and Service Library for operational and non-financial risk (ONFR), developed together with McKinsey & Company as knowledge partner.
New digital tool supports greater standardisation of industry practices
Created with McKinsey & Company as knowledge partner, and in collaboration with our global membership, this new library is based on 60,000 processes and services submitted by 50 banks and insurers. It is the most comprehensive tool of its kind in the industry.
Supporting end-to-end process management in ONFR
As financial services becomes increasingly digitalised and reliant on third parties and technology, the need for robust end-to-end (e2e) process management is more evident timely than ever. Regulation such as the BCBS Principles for Operational Resilience, the Digital Operational Resilience Act (DORA) in the EU, FCA PS21/3 Building Operational Resilience in the UK, or CPS 230 in Australia are intensifying the need to be resilient. As a result, firms need a clear understanding of their critical services and processes. The ORX Reference Process and Service Library helps firms to rapidly accelerate this capability and acts as an invaluable benchmark.
How the library helps financial firms manage operational risk
Currently, most firms polled by ORX (84%) use a process library and 43% have developed service libraries, but few have connected these. The vision for most of ORX’s members is to have a ‘single source of truth’ with a mapping between key services and supporting process and in turn a clear link to risk and controls.
Banks and insurers can use their libraries to support:
- Risk identification and assessment: along the e2e process
- Control effectiveness: ensuring there are no gaps in the control environment along the end-to-end process
- Control optimisation: supporting the standardisation, rationalisation of controls and control automation activity
- Third party management: reviewing third-party activity across the e2e process
- Process optimisation: enables process standardisation and efficiency activity - including the greater use of process automation and straight through processing
- Organisational design: supports the design of organisational structures
Two connected libraries covering key processes and services
The new ORX library consists of two separate but connected libraries – one focused on key business processes and the other on services.
The launch of the library follows the introduction of the award-winning ORX Cause-Event-Impact Reference Taxonomy in 2020, the award-winning ORX Control Library in 2022 and the ORX Risk Indicator Library in 2023.
How to access the library
The ORX Reference Process and Service Library is available free to ORX members and also for non-member institutions to purchase on the ORX website.
