The MSTAR platform offers two main features:
- A newsfeed on events related to operational risk (loss events, reports).
- A library of 36 scenarios in the areas of Conduct, Cyber, Internal Fraud, External Fraud, Error, Disruption, Legal.
The news are collected from official websites of regulators around the world, and also from press sources.
Access to the news feed is free of charge, provided that you have registered.
Each time a news is published, it is, if possible, linked to a scenario in our library.
This allows you to link the news with our analysis of each scenario and to understand the drivers of the risk that has just occurred.
The scenarios contained in the MSTAR library are the result of our research with financial institutions.
All scenarios have been simplified and stylized to make them relevant to all financial institutions that consider themselves exposed.
All scenarios are quantified, and there are 2 categories of drivers used for quantification.
Drivers of the first category are assessed independently of the bank, such as:
- The probability of an earthquake, or the probability of human error, which are based on external studies.
- The probability of a bank card compromise at a major retailer, which we calculate from historical data.
- The fraction of undue revenue a bank has to disgorge in case of mis-selling, which will be based on the analysis of actual cases.
The second category of drivers is bank-specific, such as:
- The number of derivative or futures traders,
- The geographical location of the main headquarters or data centers.
In the MSTAR library:
- The first type of drivers is quantified with all the relevant justifications and sources
- The second type of drivers is quantified for an illustrative bank called MSTAR Bank. Consult the Operational Risk Exposures Report of MSTAR bank.
A bank quantifying the scenario for itself will need to evaluate the drivers in the second category only.
