Aozora Bank collaborates with Toshiba on operational risk management
Date: Mar 05, 2013
Categories: Risk and Regulation, Technology & Operations
Keywords: Aozora Bank, Toshiba
Tokyo, February 28th 2013 - Toshiba Solutions Corporation (Head Office: Minato Ward, Tokyo; President & CEO: Shinzo Kawai) and Aozora Bank, Ltd. (Head Office: Chiyoda Ward, Tokyo; Representative Director, President & CEO: Shinsuke Baba) today announced a formal collaboration in the area of solutions to support operational risk management and other aspects of internal control for financial institutions.
As a first step, Aozora will advise Toshiba Solutions on financial operations, and Toshiba Solutions will develop the ‘QualityGym® Eigyouten Hinshitsu Alarm™’ - an integrated solution for internal management that will support operational risk management and self-inspection. Aozora Bank aims to strengthen the effectiveness and efficiency of its management through the greater linkage of various internal control functions, including operational risk management, audit, and self-inspection. The Bank considers an integrated system of this nature to be invaluable in the establishment of management frameworks. Toshiba Solutions plans to sell the system to 30 financial institutions.
Toshiba Solutions is a specialist in solutions to support the strengthening of internal controls, ncluding operational quality control, rule/procedure management and other operational support and incident management, as well as assessment management. Aozora Bank has adopted their solutions in order to strengthen its risk management system. In addition, Aozora participates in the user consortium of operational risk management solutions sponsored by Toshiba Solutions (consisting of 14 financial institutions), and utilizes the operational risk loss incident data which is shared among consortium members (mainly regional financial institutions), for analysis. Banks participating in the user consortium are carrying out a project to prepare a risk scenario catalog by integrating and organizing risk scenarios identified and assessed from risks common to financial institutions, based on risk scenarios originally formulated by each bank. This is a leading approach in the financial industry and Aozora Bank is an active participant in the project. In the areas of internal control and risk management, an important step is to accurately and exhaustively identify inherent risk; however, the sharing of loss data and scenarios among financial institutions with similar issues ensures consistency and the ability to assess, which are difficult for individual financial institutions to achieve independently.
Aozora Bank intends to actively provide its internal management expertise from the perspective that the collaboration in the system development with Toshiba Solutions and cooperation in the consortium will positively contribute to regional financial institutions and the entire financial industry, as well as the strengthening of its own internal controls. Aozora is committed to contributing to regional economies through collaboration with regional financial institutions, which will always represent important business partners for the Bank.
Re-disseminated by The Asian Banker