An off-the-shelf taxonomy can provide structure to all aspects of an integrated risk framework

A common risk language and classification structure is the basis from which to integrate Audit, Compliance and Operational Risk processes. Having an off-the-shelf taxonomy can provide structure to all aspects of an integrated risk framework and is invaluable to institutions embarking on an enterprise risk management program.

With that in mind, BPS now offers the BPS Audit™, Compliance and OpRisk applications fully populated with the RiskBusiness Taxonomy, a multi-dimensional tool providing comprehensive libraries of risk related content. This partnership offers BPS clients an out-of-the-box software solution complete with a library of processes, risks and controls mapped into standard industry categories.

The RiskBusiness Taxonomy provides an online encyclopedia, with detailed content, identifying properties, attributes and relationships. Primary data elements include:

• Detailed Risk Categories (DRCs): a comprehensive list of over 130 risk types in familiar business language, with clear unambiguous boundaries and associated key-word search, navigation and classification capability

• Control Types: a generic list of over 275 control types classified by the type of activity controlled, as well as a number of descriptive attributes (e.g. preventative vs. detective), which address control design effectiveness

• Business Functions/Process Groups: a standardized set of 76 generic business process groups cross-referenced by business line/product/corporate function activities