OpVision
- OpVision is an advanced multi-platform tool that can be used by financial institutions, utility companies and other large and medium-sized firms for the analysis and quantification of operational risk.
- By implementing an advanced approach that is fully compliant with Basel II, OpVision promotes the intelligent extraction, integration and exploitation of information on operational losses from different sources, including internal and external loss data, scenarios and risk control factors.
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Data Exploration: OpVision allows the visualization and statistical analysis of operational risk losses collected
by the institution (internal loss data) and of external losses (e.g. pooled industry data).
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Modeling: OpVision adopts the Loss Distribution Approach (LDA) for loss events categorized by business line and
risk type. Historical loss data (databases of internal and external loss events, possibly with different collection
thresholds), and expert input (scenarios, risk control factors) are combined to estimate the loss severity and frequency
distributions. Different weights can be assigned to the different sources of data, to individual losses and/or to groups
of losses according to their relevance to the risk profile of the company. The range of model distributions supported
is extensive and includes, among others, piecewise (body-tail) models, empirical, lognormal, heavy-tailed lognormal,
g-and-h and Pareto distributions for the severity, and Poisson, negative binomial and Cox processes for the frequencies.
From the fitted models OpVision estimates the distribution of aggregate losses and provides several measures of risk: Expected
Loss (EL), Capital at Risk (CaR) or operational VaR, and shortfall or conditional CaR (expected loss over CaR)
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Capital Calculation: OpVision integrates in a single application all the solutions compatible with Basel II, including
mixed (standard/advanced) models, benefits of diversification, and mitigation of capital by insurance. By tracing the
historic evolution of the Economic Capital, it monitors the institutional risk profile. Thanks to its flexible design,
OpVision can be customized to provide individual solutions for a more effective management of Economic Capital for operational
risk.
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Java Swing (JFC) application client for optimal user interaction, developed entirely in Java using a client-server 3-tier architecture, consistent with the J2EE (Java Enterprise Edition) standard.
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OpVision has been certified for use in a SAP NetWeaver environment.
For more information visit the official OpVision website
www.opvision.es.
