Next, we need to look at a function included in CAREweb™ specifically to assist our bank clients to address the requirements of the Basel Capital Accord.
The Basel capital requirements, for the first time, place monetary emphasis on being able to measure and control Operational Risk; treating this in the same way, essentially, as Credit Risk, Market Risk etc. The key requirements are for banks to:
•Detail, for specific areas of their business, the nature of the Operational Risks that they face, i.e. how the risk manifests itself, its likely impact should it occur and the probability of its occurring;
•Continuously monitor the standard of the control environment in place in respect of these risks, and take prompt remedial action in the event of significant breakdown;
•Record risk events and use the data to continuously remodel the Impact and Probability factors used in their model(s).
These requirements, however, are in respect of very specific Operational Risks the nature of which are defined in the various Basel publications. To cater for these specific requirements, it would have been possible to incorporate a separate module into CAREweb™, populated with the specific types of risk referred to, which allowed the control environment surrounding those risks to be constantly monitored. However, it is more reasonable to suppose that in a well-managed organization these risks would be managed and controlled in the same way as the many other Operational Risks which confront any large organization. This is one of the basic tenets of the CAREweb™ methodology, to use one comprehensive database to provide information about all aspects of Operational Risk management. This means that the CAREweb™ database will hold details to enable the efficient management of all types of Operational Risks; some of these will need to be considered when addressing the Basel Accord requirements, but this will simply be done as part of the usual Operational Risk Management process and not as a separate exercise.
CAREweb™ comes already populated with the published list of risks that have appeared in the various publications from the Basel Committee, referred to as “Basel Risks”. In many cases these risk descriptions will not be the same as those being used elsewhere in the bank; it is also possible that the published risks will change as new directives emerge from the Basel Committee. In addition, a bank may wish to change the standard definition of a Basel Risk, or add to the standard list. Consequently, we have included a facility to allow the Basel Risk element of the software to be tailored to an individual bank’s requirements. Clicking on the Basel Risk Listing tab will bring up the following screen:
You will notice that the listing is grouped by individual risk within Basel Risk Type within Basel Risk Category.
To edit an existing risk, click on the "pencil" in the penultimate column and either type in a new risk description so that it suits the way your own organisation describes that risk or select a new Risk Type or Risk Category from the drop-down boxes; to save click 
icon.
If you wish to add a new description to the list, click on “Add New” to bring up the following screen:
You must select a Category and Risk Type from the Basel Listing (use the drop-down lists) but then you can enter your own additional risk type to this category so as to augment the basic listing. Click to save the record and return to the “Basel Risk Listing” screen.
There is a helpful filter button at the top of the screen to help you locate specific risks or risk groupings.