RIO allows BCV to take an important step forward in the development of its operational ICS
Five years ago, in response to significant regulatory changes and a general rise in risk management-related expectations, BCV decided to expand and strengthen its operational internal control system (ICS). In partnership with Risk Management, Line management identified more than 300 operational fulfilment risks, and over 1,000 operational and management controls were identified and cascaded within the bank organization.
These changes led to a huge increase of documents both in paper and IT formats, which made more complex the task of referencing risks and controls, following up on the controls that had been implemented and documenting those controls. To cope with this situation, BCV launched in 2017 a project, to build a dedicated application aiming to simplify and improve the efficiency of the definition process of operational and managerial controls, implementing those controls at manager level and following up on them.
An analysis of already available commercial applications failed to identify a tool providing the necessary features. BCV therefore decided to develop a bespoke application, awarding the contract to ELCA as part of a tender process.
In summer 2017, ELCA began the process of developing a web-based intranet application based on the specifications supplied by BCV and a user experience concept provided by an external consultant. The key functions developed for the application are:
- Inventorying, describing and updating all operational fulfilment risks and the associated operational and managerial controls;
- Delivering a simple, intuitive tool that enables all managers to initiate, carry out and document all managerial controls;
- Enabling each manager to track in real time the timelines and results of managerial controls carried out by their direct reports, using a synoptic dashboard.
Moreover, the application provides an additional module for reporting and historical logging of operational incidents purposes.
Named RIO – an acronym of its full description in French [contrôle et suivi des Risques et Incidents Opérationnels] – the solution was rolled out in production in spring 2018.
Today RIO is successfully used by more than 350 managers to realize an average of 1,300 managerial controls per month. The controls are tracked at the Bank’s top management level and are the subject of periodic reports to its governing bodies.
RIO enables BCV to sustain key developments in its operational control system and to address to growing expectations in this area. Implementing RIO has further strengthened the Bank’s risk management framework.
Maxime Mermier – Head of Risk Management
Data centralization and managerial controls
Data centralization makes it easier to link up the risks, controls and incidents. Carrying out managerial controls in RIO not only simplifies managers’ work, but also the task of consolidating and supervising results.
Simplified access to risks, controls, incidents and results of controls for all managers based on their user rights
Fine user rights management by department and module simplifies user access to the modules and data in RIO on a need-to-know basis.
Consolidated, dashboard-based results presentation provides a clear, near real-time view of the situation. The drill-down function delivers an evaluation of the situation at all levels of the bank, while the drill-through function gives rapid access to the detailed results of controls.
BCV is one of Switzerland’s major listed banks and has been the go-to bank for people in Vaud Canton since it was founded in 1845. Its primary goal is to contribute to the development of the Vaud economy.
BCV has built close ties with local residents and businesses, thanks to its 1,900 employees across more than 60 branches backed up by almost 130 ATMs. It also offers 24-hour online banking services and operates a Customer Service Centre to provide personalised responses to customers’ questions.
Rated AA from Standard and Poor’s, the Bank’s distinguishes itself by its solid balance sheet.
BCV offers a wide range of services for private customers, companies and pension funds. With one out of every two Vaud residents and companies being BCV client, the bank is the leader in the canton’s banking market.
In line with its mission and corporate responsibility, BCV supports some 650 sporting, cultural and social associations and events. In 2018 it contributed the equivalent of CHF 700 per Vaud household in dividends and cantonal and communal taxes.