IIRM ties up with Rocsys for Basel-II solutions

The Institute of Insurance and Risk Management (IIRM), a joint venture initiative between the Insurance Regulatory and Development Authority (Irda) and the Andhra Pradesh government, has entered into a strategic relationship with Hyderabad-based software company, Rocsys, to provide Basel-II solutions for operational risk management (ORM).

Rocsys has developed a comprehensive ORM solution for the banking, finance, securities and insurance (BFSI) "" RIMO "" in compliance with Basel-II guidelines.

The solution enables banks to take up risk profiling of business lines, products, services offered by them, assigning responsibility of monitoring risks and controls, periodic risk and control self assessment, lost data capturing etc.

The system facilitates extraction of data needed for computing key risk indicators (KRIs) automatically from various data bases within the bank. The system has built-in statistical tools for analysing the level of risk, direction of movement of risk and assessing capital as per advanced measurement approach (AMA).

Similar tools are being developed for the insurance sector and other financial institutions.

"Basel-II compliance for capital adequacy has become mandatory for all banks. Indian banks need a holistic approach to implement ORM in a cost effective manner and we looked at various solutions in the market and believe RIMO from Rocsys will help the banks achieve it quickly and cost effectively," Vepa Kamesam, managing director of IIRM, said in a press release on Monday.