The first tool designed for operational risk scenario quantification.
MSTAR is based on an analytic decomposition of an expert risk assessment; typically a classical Frequency and Severity rating, into a structured graphical model. Users can use MSTAR’s intuitive functionality to share and collaboratively improve the model design. The completed models are then quantified combining internal or external data as well as expert judgment.
• MSTAR drives improved risk management behavior, because it :
- Elicits a deep understanding of the risk and related drivers,
- Entails a clear formalization of how these drivers influence the risk level
- Enhances transparency of assessment process and facilitates review and challenge
• MSTAR helps all stakeholders understand the process, as they all contribute to the model design and quantification - MSTAR models are the opposite of black boxes.
• MSTAR increases the chances that the regulator agrees that it is fit for purpose, since it allows a capital calculation which is in line with the business and risk profile of the company.
MSTAR is used for regulatory capital and operational risk stress-testing frameworks.
MSTAR is in use within internal models approved by regulators: ACPR & PRA.
MetricStream is the market leader in integrated governance, risk and compliance (GRC) and operational risk management solutions for banks and financial services organisations. MetricStream GRC solutions are used by leading retail banks, commercial banks, asset managers, investment banks, stock exchanges, federal agencies and financial institutions for automating and streamlining risk, compliance, policy and auditing programmes across the enterprises. The MetricStream solution includes integrated functionality for documenting risks, defining controls, managing assessments, identifying issues and implementing remediation plans that are based on industry-specific standard frameworks, best-practice workflows, powerful analytics and embedded risk control libraries. The solution provides a multidimensional approach for managing risk through advanced risk and control assessments, real-time risk intelligence metrics, a centralised loss database, and integrated issue tracking supported by built-in risk analytics and reporting functionality. The MetricStream operational risk management solution is based on the industry-leading enterprise GRC platform that has been categorised in the leadership quadrant by leading independent industry analysts.