Basel 3 asks organizations to implement a corporate risk management system that accounts for operational risks. Basel 3 requires financial organizations to set aside regulatory capital for operational risk – an important development that affects most financial service institutions worldwide.
Basel Compliance: A closer look at the advantages of Basel 3 & Basel 1 2 3
Know where ressources are being used and encourage efficient work and habits by planning well in advance
Implement service orchestration to design more flexible communications networks that mirror the efficients of your business process management
Integrate your people, processes, and technology by taking advantage of our workflow engine to deliver work to where it’s needed, and keep all employees up to date with the most important priorities
Portable Process Manuals
Ability to generate a complete output of your processes and all of the related information that is ready for print. A collaborative tool that allows your agents to share information more widely
Implement Standard Methodologies
Avoid the need for continual trial and error in improving your client’s operational efficiency; get a head start by taking advantage of industry standards
Our process methodology and support for business rules and risk/control management allows effective process design that has all the appropriate checks and balances
By uniting goals and creating a common framework for your clients, they will be able to cooperate at a previously unattained level.
Business process management will expose unused resources and allow you to take better advantage of them along the lengh of the process
Basel Compliance Process
Basel 3, or The New Accord (based on the original Basel Accord), was created to improve the way financial organizations and regulators approach risk management. Its goal was to revise the international standards for measuring capital and to introduce a more formal approach to measuring and managing operational risk.
It is based on three pillars:
- Minimum capital requirements
- Supervisory review
- Market discipline
From a BPM perspective, the standards of Basel 3 have increased pressure on:
- Tracking capital adequacy,
- Measuring and maximizing profitability, and
- Streamlining systems from a Business Process Management (BPM) perspective
A clear Business Process Management (BPM) framework will allow you to easily design processes and develop the strategic measurement necessary to ensure Basel compliance by monitoring performance and reducing operational risk across your organization.
How Interfacing can Help
In addition to meeting Basel 3 requirements and all other standards for risk management, the EPC offers versatile profitability analysis, fully integrated performance measurement, and better planning capabilities.
Your organization benefits from:
- Lower capital reserve requirements
- Lower credit risk and losses
- Extended risk-adjusted pricing
- Better reporting of exposures
- Better processes, controls and more effective cost management
- Clearer compliance reports