Industry Initiative of the Year: ORX

ORX’s op risk taxonomy project improves measurement of progress and change

Luke Carrivick: “People are using it to evidence that making the change is a credible thing to do”

When is an operational risk not an operational risk? When, as a growing number of financial institutions were finding, it is not defined in the op risk taxonomy laid down by the Basel Committee on Banking Supervision in 2001. In the 17 years since the organisation began its work, operational risk practice has diverged increasingly from the classification scheme used by regulators to oversee how financial institutions manage op risks and how they track losses.

“Basel event types, originally