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On 24 and 25 September 2009, various interbank consortia for operational risk loss data collection, active in different domestic and international contexts, met for the first time in Rome upon an invitation by the DIPO Association (Italian Database of Operational Losses).
The Convention saw the participation of the major consortia active within the banking field. Of those established within the context of the national banking association of reference, we would like to mention the ABA Operational Loss Data consortium in the US, Gold in the United Kingdom and HungOr in Hungary. The two German consortia for this industry, which were established within the context of the Sparkassen/Giroverband (ORD) and of public banks such as Landesbanken, (DaKor), were also present. Furthermore, the ORX consortium, which counts amongst its members some of the major international players, was also represented at the conference by its Chairman.

Based on the presentations made by each of them, a preliminary table was outlined, which summarises the initiatives prepared by such entities.
During the two-day event, also Regulators’ representatives urged the continuance and development of consortia activities that could include:

assuming an important role in the identification and harmonisation of criteria for the recording of certain specific categories of events

expanding the scope of data collection so as to include the data used for the scenarios and provide guidelines for their realisation

acting as catalyst for the dialogue between the insurance and banking industries as regards key issues, for the purposes of more effective programmes for the insurance transfer of the Operational Risk.

Also worth noting were the reports made by individual DIPO members who, as "guests", highlighted the role of the consortia within the context of enhancing internal loss data collection, the stability problems of the OpVar estimates in the event of fluctuations of the extreme loss data given the regulatory level of confidence, the search for an efficient frontier of the insurance policies of an AMA group and the cultural shift from control to actual management of Operational Risk.

The idea of an event focusing on Operational Risk external data was unanimously deemed appropriate. The issues to be dealt with at the next conference have already been suggested, and include the treatment of cross losses between Operational Risk and other risks, losses related to systemic events, case histories providing concrete support to the decision-making process through the guidelines resulting from the Operational Risk Management and the development of research on the connection between different operational risk classes.

DIPO - ITALIAN DATABASE OF OPERATIONAL LOSSES - www.dipo-operationalrisk.it - dipo@abi.it