Playing partners: historically, Wachovia Corp. had looked at risk by line of business. After its merger with First Union, management decided to develop a more holistic approach. Finding the most effective solution was as complex a process as the merger itself—but well worth the effort

Risk & Insurance, April 15, 2004 by Carrie Ruddy

DOWN TO ONE

After an extensive vendor-review process, Centerprise's Enterprise OpRiskCenter was selected, primarily because it offers the ability to design, modify and reconfigure screens for specific needs as well as creating unique workflow capabilities that allow for automated notification, staff routing and exception handling.

According to Hanssen, "Centerprise provided a solution that incorporated all of our required components while allowing for open standards and the ability to interface with other Wachovia applications."

Yousef Valine, Wachovia's head of operational risk management, said, "What attracted us was their integrated, well-architected solution that scales to accommodate an enterprise-wide deployment. The flexible framework will allow us to create a solution consistent with how we manage risk at Wachovia."

Once the selection was made, Wachovia entered into a detailed design and development process to customize the system to meet specific needs. Wachovia's operational risk team asked more than 50 stakeholders to assist in a phased implementation process that will occur over a two-year period. Notes Hanssen, "The key stakeholders have helped ensure that the solution provides actionable information that is consistent across all areas of the company."

During first quarter 2004, Wachovia began using the enterprise-wide operational risk solution for risk and control assessments and loss data collection. As implementation continues throughout 2004, usage will expand to include issues and action plans as well as business unit risk profiles.

Hanssen said, "Implementation of the operational risk platform positions Wachovia to meet regulatory requirements, but even more important, helps us to foster a consistent and effective risk management environment across the company."

CARRIE RUDDY handles corporate communications for Wachovia Corp. She can be reached at riskletters@lrp.com.