Reference Scenario Portfolio

About the Reference Scenario Portfolio

This year, we're launching a major initiative to develop a new Reference Scenario Portfolio designed to be an essential reference tool for operational risk scenario practitioners. 

The portfolio will provide a comprehensive set of curated scenario examples covering all operational risk types based on up-to-date industry data. It will be developed exclusively using information contained in the ORX Scenario Library, a database of current scenarios submitted by over 75 banks and insurance firms based around the world.

The portfolio will support scenario planning, identification, and development and help drive more risk management value from scenario work. It will enable organisations to benchmark their scenarios and ensure their own scenario portfolios are both comprehensive and relevant.

Why develop a reference portfolio?

Through the ORX Scenario Library, we maintain a unique and regularly updated database of operational risk scenarios shared by a wide range of financial services organisations, providing a robust foundation for scenario practitioners to create, update, and validate their portfolios.

One of our strategic goals is to better leverage this dataset to unlock its full value for subscribers and consistently support and enhance scenario process optimisation across the industry. So, we're developing a curated version of our scenario library that will highlight, explain and analyse the full range of distinct scenario topics covered by the 1,487 scenarios in the current database.

The reference portfolio will

• Standardise the scenario information associated with each scenario topic identified in the ORX Scenario Library to generate an industry-wide reference tool, comparable to ORX’s other available reference libraries
• Provide practitioners with a curated set of current scenario examples that is comprehensive, based on current industry data and designed to support the use of scenarios for a range of capital and risk management purposes and to optimise different stages of the scenario process

How will the portfolio help?

Using data from over 75 firms, the portfolio will provide an industry standard that supports benchmarking, scenario portfolio gap analysis, scenario planning and identification and scenario development and assessment. It can also be used to inform discussions of risk management outcomes and actions arising from scenario analysis. Overall, the portfolio will help optimise key stages of the scenario process and maximise the management value of scenarios.