Advancing Operational Risk Management at S-Bank
ORX-aligned processes – Stronger risk data foundations – Structured control framework
Background
S-Bank is a Finnish retail bank providing banking, financing and wealth management services mainly to private customers. Operating in a highly regulated environment, S-Bank continuously develops its risk management capabilities to ensure resilient, well-governed and sustainable operations.
To further strengthen its operational risk management framework and risk data architecture, S-Bank partnered with Advisense. The objective was to enhance the bank’s ability to identify, analyse and manage operational risks in a structured and forward-looking manner, aligned with recognised industry practices.
Challenge
S-Bank had identified a need to further mature its operational risk management by:
- Aligning data and reporting with a recognised industry taxonomy.
- Improving the usability of risk data to support forward-looking risk analysis and decision-making.
- Establishing a clear and consistent framework for describing and governing controls.
- Ensuring that the operational risk framework supports organisational resilience.
The ambition was to build solutions that are not only compliant, but also practical, scalable and clearly owned by the organisation.
Solution
Advisense supported S-Bank through a structured, phased engagement, combining methodological expertise with facilitation and documentation support. The collaboration focused on strengthening existing practices and enabling S-Bank to further develop its framework independently. Goal was to together create a transparent and comprehensive risk taxonomy for operational risk.
Our collaboration with Advisense has been highly constructive and closely aligned with S Bank’s objectives. Their ORX expertise and willingness to learn along the journey, combined with a pragmatic and hands on approach, supported us in developing our operational risk management practices in a way that meets both regulatory expectations and real business needs. We particularly valued how Advisense consistently ensured effective knowledge transfer and capability building within our own organisation. The solutions did not remain external models, but were embedded with clear internal ownership, creating a sustainable foundation for the continued development of our operational risk management.
Olli-Pekka Piipponen, Head of Operational Risk – S-Bank
It has been a great journey working with S-Bank to support their initiative to strengthen their operational risk management capabilities. Our role was to help S-Bank to translate the ORX framework into concrete, organisation-specific practices, while ensuring strong internal ownership and long-term sustainability.
Joonas Värtinen, Assurance and Resilient Governance – Advisense.
ORX Implementation
S-Bank and Advisense jointly implemented processes for collecting and reporting incident data in accordance with the ORX reporting taxonomy. Advisense also supported S-Bank in its ORX application process.
Assignment continued with the development of the Risk Assessment process focused on leveraging ORX taxonomy structures in forward-looking risk analysis. This supported a more consistent identification of material operational risks and clearer linkage to mitigating actions.
Developing the Control Framework
As the next phase, S-Pankki has initiated the development of a control framework for establishing a clearer structure for control descriptions, ownership, governance and use as part of the operational risk management framework, supporting the bank’s overall resilience.
Advisense acted as a facilitator and supported S-Bank’s internal subject-matter expertise. The cooperation created an actionable roadmap to develop the bank’s control framework and a strong ownership of the outcomes.
Result
The collaboration has supported S-Pankki in systematically strengthening its operational risk management capabilities.
Key outcomes include:
- ORX-aligned incident reporting processes, integrated into the bank’s risk management framework.
- Improved use of risk data to support forward-looking operational risk analysis.
- Increased transparency, structure and internal ownership of operational risk management practices.
- A more holistic risk picture, supporting management and decision making
The engagement supported S-Bank’s operational risk professionals to build a strong foundation for S-Bank’s continued journey toward more mature, data-driven and resilient operational risk management.
