Operational Risk Management

A M E R I C A N H O M E M O R T G A G E S E R V I V I N G I N D I A P V T . L T D .
( A S U B S I D Y O F O C W E N F I N A N C I A L L L C . )
OPERATIONAL RISK
MANAGEMENT
N A B I L H A M D U L A Y
M . B . A . ( F I N A N C I A L M A N A G E M E N T )
T R I N I T Y C O L L E G E O F E N G I N E E R I N G & R E S E A R C H , P U N E
S E A T N O . : 1 8 6 1 9
G U I D E : P R O F . P R A L H A D J O S H I
2 0 1 4 - 2 0 1 6

Objective of Study
To perform an audit of the currently existing practices in the organization
To understand the technologies involves and assess its effectiveness for such a
geographically widespread organization
To understand and assess the Organizational Structure and the Business StrategiesTo understand and assess the Organizational Structure and the Business Strategies
To assess the trainings provided to employees
To understand the legal liability and corporate insurance of the organization
Nabil Hamdulay | MBA (Fin.) | 18619 | 2014-2016

Scope & Limitation of Study
Scope
Management, this study covers the following functional aspects :-
Operational Infrastructure
Loan Administration
Default Servicing
Loss Mitigation StrategiesLoss Mitigation Strategies
Limitations
Due to wide geographical footprint of the organization, it was difficult to cover all
locations for a comprehensive study
On a conceptual front, prioritizing the risk management processes too highly could keep
an organization from ever completing a project or even getting started

Research Methodology
Collection of Primary Data
Observation
Focus Groups
Direct Interview
Collection of Secondary Data
Company ReportsCompany Reports
Journals
Type of Sampling
I have used Cluster Sampling for my study. The sampling was done on the basis of
geographical location of the outsourced offices of the company. The data was obtained
from the staff located at Pune site in India

Data Analysis

Major Findings
It was observed that the organization has adequate framework and policies in order to
ensure that risk is minimized in all aspects of business. The findings of this audit gave a
perspective of the operational risk management in the following aspects
Operational Risk Infrastructure1. Operational Risk Infrastructure
2. Loan Administration: Servicer Performance Metrics
3. Default Servicing and Loss Mitigation Strategies
4. Real Estate Owned (REO) Administration and Marketing

Conclusion
The current operational risk assessment of the organization can be said to be Stable for
the non-prime and special servicer rankings
It is our opinion that the servicer rankings will remain unchanged during the next 12
months. In our view, Ocwen is fully capable of serving as a residential non-prime andmonths. In our view, Ocwen is fully capable of serving as a residential non-prime and
special servicer for its investors and subservicing clients

Suggestions
To maintain a robust compliance department to ensure compliance with national
mortgage standards and all federal, state and local laws requirements
To create value for investors, government entities, financial institutions and servicers
through superior servicing performance and loss mitigation results by utilizing its state-
of-the-art technology, world-class training and six sigma processes
To develop a consultative servicing approach incorporating psychological principles and
utilizing advanced modelling of loan and consumer-specific resolution alternatives to
reduce losses

THANK YOU

Operational Risk Management

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (18)

Similar to Operational Risk Management

Similar to Operational Risk Management (20)

Recently uploaded

Recently uploaded (20)

Operational Risk Management