ORX report rounds up loss events for members

NEW YORK – Op risk managers will be given a unique insight into banking industry loss experiences this month, when the Operational Riskdata eXchange Association (ORX) publishes the first of a planned series of regular reports. The report aggregates loss data reported by ORX members over the first five years of the association's life – a period in which membership trebled to 36 institutions, with a total annual income of more than €1,280 billion. In total, the ORX database contains 63,554 events, and its members have suffered cumulative losses worth €21.8 billion.

Joe Sabatini, ORX's chairman, and head of the corporate op risk team with JP Morgan in New York, says the report dispels "certain myths about industry losses and confirms many expectations with regard to the real pockets of risk and loss experience. Over time, the trends that become apparent will be insightful."

One statistic that might raise a few eyebrows shows ORX membership – and losses