ORIC Data

ORIC deals with operational risk data - information on losses due to failed people, processes, systems or external events. It provides a quality-controlled database to improve the risk measurement and modeling skills of its members.

The consortium has set a standard for the industry in terms of risk event categorisation. The Level 1 and 2 categories are consistent with the Basel II Accord. ORIC and its members have developed a further Level 3 categorisation system to increase the granularity of the database.

The ‘Loss’ database maintained by the consortium provides in-depth narratives of the events leading to losses. It also captures the causes that lead risks to materialize and turn into loss events. The database design suits the international expansion of ORIC as it captures the geography of losses and allows firms to submit data in various currencies. The database infrastructure supports data relating to actual monetary losses as well as near misses. In addition, when it is not possible to accurately quantify near miss losses in monetary terms they can be stored in the ORIC database as ‘unquantifiable near misses’. 

The database currently stores over 2,500 loss events collected over the last four years, with total gross operational risk losses over £1bn.