Capco – which in December acquired the Operational Risk Tool Suite (ORTOS) software developed by Dresdner Bank – is using it to service two new customers: Volkswagen Financial Services AG and Fiat Bank GmbH.
“Financial institutions face greater reputational and other operational risks in an environment characterised by unprecedented disclosure requirements and increased operational complexity,” says Deborah Williams, Group Vice President, Capital Markets and Corporate Banking, Financial Insights. “While Basel II and the US Sarbanes Oxley Act require financial institutions to improve their operational risk exposure tracking and management, as well as control procedures, few commercial products exist today that meet the need for the full breadth of approaches an organisation demands for operational risk.”
ORTOS is a software application that provides regulatory and managerial reports for senior executives to analyse operational risks. ORTOS modules that can be customised to satisfy and fulfill Basel II mandates on the identification, collection and evaluation of operational risk in financial institutions and sections 302 and 404 of the US Sarbanes Oxley Act. Based on client analysis, Capco estimates its customers have experienced a 25 to 35 per cent reduction in operational risk capital charges through the ORTOS solution.