The final Basel II proposals stipulate that an Operational Risk Management ‘ (ORM) system’ must be implemented by an independent operational risk management function responsible for developing and implementing “strategies, methodologies and risk reporting systems … to identify, measure, monitor and control/mitigate operational risk” (Basel 2004). To comply with these qualitative standards, any ORM system must also be capable of being “validated” or reviewed regularly by internal and/or external auditors and be evaluated to “have and maintain rigorous procedures”.

There must be regular reporting of operational risk exposures, including material operational losses, to business unit management, senior management, and to the board of directors. Financial institutes must have procedures for taking appropriate action according to the information within the management reports. Also the Operational Risk Management system must be well documented. The organization must have a routine in place for ensuring compliance with a documented set of internal policies, controls and procedures concerning the operational risk. The management system, also must include policies for the treatment of noncompliance issues.

It is clear that any reporting system used in the framework of IFRS, BASEL II and later Solvency II will consist of structured information, out of automated systems (data warehouse, dedicated risk analysis tool, bespoke risk management systems, etc.) presented in a fixed format. To complete these reports, comments and explanatory text is added by responsible corporate officers. To be acceptable these reports need a structured approach where a detailled audit and trace function keeps track of all activities related to reporting process.

uniplicity|report offers organizations dealing with IFRS, BASEL II and Solvency II requirements, the possibility to:

• structure a report creation process;
• comply with all imposed regulations by any operational risk officer;
• use a single source database for all report elements, allowing organizations to:
  • publish tailor made reports;
    
  • reuse report components in different settings or reports;
    
  • multi format publishing.