DNB uses the ORM Assessment Framework

DNB uses the ORM Assessment Framework

The Assessment Criteria

The DNB is open about the way in which it carries out the assessment on banks that use the standardized approach. The assessment framework (Reference Framework 2015) is available for the bank itself so that it is able to periodically carry out a Self Assessment for its own organization (parts) on the basis of the criteria of this Assessment Framework. The assessment is based on a number of topics such as:

Risk Culture;
Oprisk Appetite;
Policies & procedures;
Identification & assessment;
Reporting, Monitoring & Disclosure;
Control & Mitigation;
Change Management;
Internal Audit.

The maturity level per criterion is determined by the degree to which a criterion can be met. A four-point ordinal scale is used for this. Ultimately, the assessment leads to an overall picture of possible room for improvement.

Is it useful to perform this Self Assessment?

We think so. It gives a good picture of how the regulator looks at you. We do believe that this assessment framework is a framework about the design and existence of ORM, but it says nothing about how your bank works. In practice, banks have of course implemented numerous control measures to avoid the risks.

How can CERRIX help with this?

We can help you carry out this Self Assessments and prepare a report for this. It is better if we can process this Self Assessment in our CERRIX tooling. In that case, we will use the DNB Assessment Framework as standard Control Frameworkdeliver along. In that case, you can periodically re-assess the assessment so that you can properly monitor the extent to which you increase the maturity of ORM in your organization. Improvement actions can be closely monitored. It is obvious that this will also help you in reporting to the regulator.

Share this message