APQC Releases Industry-Specific Business Process Framework to Help Banks Measure Performance and Manage Enterprise Risk

New Banking Risk Management Standard

(Houston, TX - May 20, 2009) - APQC, a global resource for process improvement, today released a new business process framework for the banking sector. The new standard is based on APQC's Process Classification FrameworkSM (PCF), a taxonomy of cross-functional business processes that allows objective comparison of performance within and between organizations.  The APQC Banking PCF may be downloaded at no charge at www.apqc.org/pcf.

"The institutional failures, government bailouts and subsequent credit crisis have raised major questions about banks' abilities to effectively manage risk," said Carla O'Dell, president, APQC. "As bankers work to rebuild their control processes - and restore investor and customer confidence - APQC's Process Classification Framework provides a structure to make apples-to-apples performance comparisons and to develop detailed process improvement plans."

The framework defines a range of processes for managing enterprise risk, including:

  • Establishment of a board-level risk committee,
  • Design of risk management control activities,
  • Monitoring risk management effectiveness,
  • Generation and review of risk reports,
  • Management of credit risk, market risk and asset liability, and
  • Risk forecasting.

APQC developed the Banking PCF in partnership with IBM, which uses the open standards approach to develop objective, comparable and higher quality comparisons of business performance. Leveraging the cross-industry PCF, industry experts developed relevant frameworks to enhance the value and incorporate banking-specific process nuances. 

The banking specific PCF is the tenth industry-specific process framework released by APQC in the past 12 months.  Initially developed in 1992 by APQC and a group of member organizations, the PCF has continued to evolve to meet the needs of organizations throughout the world. It is updated semi-annually to reflect new enterprise categories, processes, definitions and key performance indicators.  All versions of the PCFs organize operating and management processes into 13 enterprise-level categories, including process groups and more than 1,500 processes and associated activities.

The PCF forms the foundation of the APQC Open Standards Benchmarking CollaborativeSM (OSBC) research (www.apqc.org/osbc). The OSBC program allows organizations to directly compare their performance - at no cost - against other organizations for the detailed processes described in the PCF. In addition the PCF enables organizations to understand their inner workings from a more customer-focused horizontal process viewpoint rather than a vertical functional viewpoint.

About APQC

APQC is the leading resource for performance analytics, best practices, process improvement, and knowledge management worldwide. Our research studies, benchmarking databases and renowned Knowledge Base provide managers with intelligence that they can use to transform their organizations for better results. A member-based nonprofit founded in 1977, APQC currently serves over 750 of the Fortune Global 1000 companies.  To learn more, please visit www.apqc.org or call 800.776.9676.

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