Best Practice Consulting
The obligations and responsibilities of corporate leaders as outlined in the legal framework in Germany and Europe present a set of completely new managerial functions associated with stringent standards of liabilities for board members and managing directors.
Vation Technology supports you in this professional discipline with experienced consultants who will
effectively and competently assist in the drafting and execution of the required measures. Often this means a partial or
complete redesign of the corporate IT landscape.
In order to investigate and specify the risks of appropriate measures of procedure, a multi-tiered risk assessment is
required, which Vation Technology can undertake for you.
KonTraG (only in Germany)
Executives (and also directors) are explicitly and legally required to implement a risk management system
Liability for operative risks specifically includes IT risks
Measures and procedures for risk advance notification and defence must be in place
In an emergency must provide proof that their subjective and objective actions and behaviour were in accordance with guidelines
It will be required that the "executive board plans and institutes appropriate measures for the monitoring and protection of the company business against potentially threatening developments in early stages." (§91 Abs. 2 AktG).
The bank for international settlement (BIZ) in Basel was recently working on fundamental changes to the laws governing the supervision of banking. These laws state, that banks in future will have to more stringently align their invested capital with the business risks of the client and will receive incentives for providing solid risk management. The new regulations are partly valid since 1. January 2004.
In order to determine the circumstances of the individual in future, a mass of data will be required, which companies/ businesses must collect and compile and then provide to the banks. This is the present and future basis of the credit engagement.
Basel II (International )
The Basel II resolution increases the pressure on banks and their IT organizations to the compliance with requirements to provide proof of credit and operational risk history, in order to qualify for endorsement by the international rating based (IRB) fund allocation.
The impact of the operative risk aspects of Basel II on the IT organization is twofold.
First, the corporate IT will be required to set up systems which maintain and archive all the historical data of credit and operative risks (processes, systems, events, people) in order to satisfy the IRB requirements.
Second, IT will be exposed to extreme pressure to minimize the cases and incidents of system failures and application unavailability which lead to process interruptions and increase the operative IT risks, thereby reducing the chance of consequential penalties which may applied, affecting the rating and standing of the endorsement through the IRB.
In order to investigate and specify the risks of appropriate measures of procedure, a multi-tiered risk assessment is required, which Vation Technology can undertake for you.
