Italian banks join op risk loss data sharing platform

The Italian Banking Association leads a new online op risk loss data sharing initiative

ROME - Italian banks are taking part in a new online operational risk loss database. An interbank consortium led by the Italian Banking Association (ABI) has launched the online initiative from List Group to share operational risk loss data for Basel II advanced measurement approach (AMA) compliance.

The scheme is part of the existing Italian database of operational losses (Dipo) project, comprising 34 member banks measuring and testing operational risk exposures, such as regulatory non-compliance, and risks of terrorism and financial crime.

"Operational risk is responsible for some of the biggest losses in the financial services sector," says Giorgio Aprile, operational risk manager at participating Italian bank Monte dei Paschi di Siena. "However, the industry has the least amount of data for this risk. Sharing ideas and information on best practice and ensuring banks can effectively manage this risk is essential."

The Dipo project is based on List's governance, risk and compliance (GRC) software, GRC Evolution. The vendor says it provides a secure, encrypted anonymous database for information-sharing purposes.

List says the system helps banks refine their stress-testing scenarios, using data across organisations, event types and business divisions. The firm says it is also suited to firms seeking a tailored approach - for example, to manage structural change such as banking mergers and acquisitions.