5/21/2023 0 Comments Orx taxonomy![]() Instead, you can use our taxonomy to help develop your organisational taxonomies and to provide industry evidence to support change. We haven’t created the taxonomy as a standard specifically intended to be adopted wholesale. The taxonomy can be used as a key reference to benchmark against and to observe industry trends. ![]() This reference taxonomy aims to address this issue by providing a new common language for the industry.” “Comparability has suffered from the adjustments financial institutions have made to their internal taxonomies to reflect the significant changes in operational risk. How can you use the ORX Reference Taxonomy? The data we collected came from a wide range of financial institutions, allowing us to create a taxonomy that can be used by banks and insurers, no matter their size, around the world. In 2019, we decided to build on this and create an updated version. Using information from 60 member firms who shared their taxonomies, our new reference taxonomy updates the level 1 risks proposed in our previous version and digs deeper into level 2 risks. In November 2018 we published our first edition of the taxonomy, which went on to win industry initiative of the year at the Operational Risk Awards. It was in response to this divergence that we began work in 2018 to create an operational and non-financial risk taxonomy that the industry could use as a reference point. “ Our strategic priority was to create a common point of reference for operational risk taxonomies, laying the foundations which allow industry debate and consistent industry sharing of insights and data going forward." ![]() In doing so, they are deviating from the Basel Event Types and in the absence of a common standard, we have observed a great deal of divergence. This changing risk profile, combined with a recent shift of focus away from capital measurement towards risk management, means that many organisations are updating their operational risk taxonomies. ![]() Risks such as conduct, cyber and third party have risen in importance and now dominate boardroom agendas. There has been a substantial change in the operational risks faced in financial services over the last 15 years. Find out more about the Cause and Impact Taxonomy In 2020, we published a complementary Cause and Impact Taxonomy to support the Event Type Taxonomy. About the ORX Event Type Reference Taxonomy A strategic priority for the operational risk community Cause and Impact Taxonomy also available ![]()
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