List Group, the Italian financial services technology firm, has said it is working with risk management professionals across the world in an effort to develop more sophisticated operational risk analysis software.

List’s efforts are aimed at helping institutions meet the stricter regulatory requirements that will likely be one of the outcomes of the credit crisis. The firm believes that qualitative views of risk are insufficient and that firms need to be able to conduct a more accurate and mathematical evaluation of risk – something which is particularly important as regulatory authorities review banks’ capital adequacy requirements.

List is working with financial institutions and risk management consultancies in Europe, the US and Asia. So far the firm has developed and deployed Advanced Measurement Approach operational risk management software for 12 financial institutions in Europe and the US, and has performed more than 30 installations in total.

“Operational risks such as fraud, non-compliance of regulations and acts of terrorism are responsible for some of the biggest losses in the financial services sector. To reduce the potential impact of these risks we are drawing on the experience of risk management experts and combining this with List’s flexible analysis software,” said Alessandro Casali, List Group’s director of Governance Risk & Compliance.

List’s governance risk and compliance management software suite, GRC Evolution, supports a number of risk management methodologies and models to provide quantitative views of risk. Among the software’s capabilities are stress testing and insurance modelling, as well as forward-thinking “what if” scenarios.

List was founded in 1985 in Pisa, where its research and development is still based, and operates out of offices in London, Madrid, Paris, Milan, Turin, Voghera, Kuala Lumpur and New York.