Operational risk model

Before developing the elanev Operational Risk Model our risk experts analyzed 50+ industry op risk models and accompanying regulator feedback.

  • Reduce regulatory risk – apply a regulatory recognized approach to assessing operational risk capital
  • Reduce uncertainty – align to the industry and gain deeper insight
  • Increase control – understand operational risk capital associated with new product lines, new portfolios and your insurance coverage

Very popular with our challenger banking and asset manager clients! The elanev OR model affords our clients the ability to assess pillar 2 capital in a simple, repeatable and real-time manner. Benefits from our experience of some 50+ industry approaches, rigorously vetted and cognisant of regulator feedback. Cheaper than either maintaining an internal solution or using other external vendors.

Leading clients


“As well as providing a practical model, elanev delivered support and training to ensure the technical aspects of the model were fully understood. elanev are also able to provide valuable insight from across the sector. We look forward to continuing to work with elanev in the future.”
Faisal, Senior Risk Manager, Secure Trust Bank.

From first-hand experience elanev have a very intuitive approach that is simple to understand and straightforward to use. It was a pleasure to work with elanev.
Kashif, Head of Operational & Technology Risk at Santander Asset Management.

providing leading insights


We not only provide clients with the elanev Operational Risk Model but seek to support the wider industry. We recently prepared a Capital Benchmarking Survey for CROs and Heads of Operational Risk at leading challenger banks.

Easy to implement


No IT change required – we deploy using our secure sotfware as a service (SaaS) approach.
Compliant – no need for you to share personal identifiable customer information.
Save on OPEX – the elanev Operational Risk Model removes the need for internal model build and maintenance, helping you to keep associated costs to a minimum.

Arrange a demo


Experience the benefits of the elanev Operational Risk Model for yourself. Contact us to arrange for a no obligation demonstration. What’s more, you could be live with our full service within hours.

Frequently asked questions


What is elanev Operational Risk Model? The elanev Operational Risk Model is an online tool designed to help you assess the capital associated with low frequency – high impact operational risks.

How is it accessed? The elanev Operational Risk Model is accessed via our secure online portal. We provide you with a simple template to capture model inputs and settings. Upload the template and get a detailed report returned in real-time. The report contains capital estimates, commentary and insights. Repeat the process as often as you like as the model is available 24x7x365.

What type of inputs does the model use? The model can be run using the results of your scenario analysis or from fitting to real data. A variety of modeling options can be selected within the template too. These are explained within an easy to understand technical document. We will support you with your initial set up and provide ongoing support. We also provide training and wider consultancy services as required.

What about our data? We do not store or back-up your data. It is only used to run the model.

Why should we use a model? Regulation requires firms to assess their operational risk related capital position as part of their ICAAP process. The capital held should be sufficient to cover low frequency but high impact events. Recognising that most firms have not experienced such large losses, regulation allows for the application of scenario analysis. Unfortunately, scenario analysis can be prone to uncertainty especially when assessing capital at the required low frequency but high impact levels. Typically, expert judgements overestimate more frequent risks and underestimate remote risk. Modeling scenario analysis outputs helps firms reduce uncertainty in their capital assessments. It provides a very effective mechanism for Risk teams to review and challenge judgements made.

What is the regulatory view on such models? Using the right scenario model to help in the assessment of Pillar 2 capital is viewed extremely positively by Regulators and meets their increasing regulatory expectations.

Is the model validated? Yes, the model is validated according:
1. The technical document contains a set of test batteries that detail the test we perform on the model and the corresponding results
2. The model results have been compared to those from an independent third-party model as part of a client take on process.
3. The model has been presented to regulators and has been party to numerous regulatory processes.  All returned successful.
4. The model methodology benefits from the knowledge and understanding of some 50 plus industry models mainly in the US but also in the UK and EU. This includes model design, build, implementation, development and internal, external and regulatory audits and reviews. Indeed, our OR expert supported a leading regulator in a series of OR model reviews. Importantly, we have been party to regulatory model feedback and corresponding responses. This placed us in a unique position to develop a market leading approach to operational risk scenario modeling that meets regulatory expectations in an easy to use and informed manner.

That all sounds expensive. Is it? We base our pricing on a fraction of a single operational risk modeling FTE which would be required to maintain an internal model. What’s more, our pricing is substantially less than that of a Big-4 Professional Services firm whilst our Operational Risk modeling insights are more extensive.

Do you provide operational risk consultancy? Yes, and we can provide wider consultancy services as required.