Data quality, integration and agility form an essential foundation for a comprehensive operational risk management solution.

Operational Risk Management (ORM) is defined by the Basel Committee on Banking Supervision (BCBS) Basel II accords as “the risk of negative effects on the financial result and capital of the bank caused by omissions in the work of employees, inadequate internal procedures and processes, inadequate management of information and other systems, and unforeseeable external events.” This has been subsequently revised and extended under BCBS 239 with fourteen principles of governance and risk management.

In addition to these broad risk management policy proposals, there are two major business drivers to contemporary banking ORM initiatives:

  • Standardization across value chain for competitive advantage and enhanced customer experience
  • Capital adequacy management and analysis such as for the Basel Accords

Initial ORM implementations were typically built off single data instances and were unable to adapt to evolving approaches. Next generation systems need to support data integration across data silos and be agile and adaptive to reflect the results of continuous incremental change. ORM is not one and done, but a constant and evolving need.

A major obstacle to the development of a 360-degree view of risk is that the required data comes from many sources including:

  • Portfolio position data
  • Client data
  • Financial Accounting data
  • Market data
  • Organizational structure data
  • Reference data

As part of an ORM solution, quantified risks across all parts of the organization need to be continuously analyzed and monitored against accepted ranges so that remedial action can be taken and processes adjusted. Reference data needs to be adjusted to ensure that the solution incorporates and reflects changes to targets and ranges.

Capital Adequacy management and analysis using approaches such as the Basel Accords Advanced Measurement Approach (AMA) require the collection of data across four broad classes of data:

  • Internal loss data
  • External data
  • Scenario analysis
  • Business environment and internal control factors

This requires that data is collected and managed at low levels of granularity so that losses can be categorized into standard units of measure, prior to the computation of potential distributions of loss.

ORM is a complex subject, and the challenge of building a comprehensive and accurate view of risk factors only exacerbates the problem. Providing tools that support the increasingly fine levels of granularity, data integration across silos, and synchronized views to support continuous availability of data will ensure operational risk management success in the face of changing approaches and constant refinement.

How Magnitude helps

  • Magnitude’s unique business model driven approach to automating the data warehouse results in an industry leading time-to-value as more effort goes into defining the business requirements of an operational risk and capital adequacy data warehouse and less into the technical effort of building and maintaining the data warehouse.
  • An integrated store of accurate and current information is foundational to any ORM effort and the Magnitude Dynamic Information Warehouse (DIW) is uniquely able to rapidly build and maintain such a foundation.
  • Ends semantic disconnects across the organization, ensuring that risk factors are clearly identified and weighted correctly in risk analysis.
  • Avoids high risk “rip and replace” strategies, using the Magnitude DIW to incrementally integrate, manage and load transactional and operational data from disparate silo and legacy systems into an operational risk data warehouse.
  • Ensures that changes to source transactions and operational organization structures are automatically reflected in business analytics and reporting views so that decisions are based on the most accurate risk profile available.
  • Magnitude Master Data Management ensures that reference norms can be incorporated for continuous monitoring in operational risk management and ensures data quality and governance through rules-based validation and incorporation into workflow.
  • Offers an agile technology and approach to accelerate project delivery time to meet business needs faster
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Solving the Operational Risk Management Puzzle

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© Copyright 2017-2018 Magnitude Software, Inc. All rights reserved. Magnitude Software is a registered trademark of Magnitude Software, Inc. in the U.S. and other countries. All other product and company names mentioned herein are used for identification purposes only and may be trademarks/registered trademarks of their respective owners

Chris Ney

Chairman and
Chief Executive Officer

Chris oversees Magnitude Software’s overall corporate vision and strategic direction.

As Chairman and CEO, Chris leads Magnitude Software’s corporate vision and strategic direction, driving the company’s acquisition, integration and growth strategies to extend the company’s global reach. Under his leadership, Magnitude Software has developed an unparalleled customer experience, strengthened its culture of innovation, and greatly increased profitability and shareholder value. In September 2014, Chris successfully secured up to $100 million in capital to further build Magnitude Software through product innovation, organic growth and strategic acquisitions.

Ney was previously Co-Founder and President of Silverback Enterprise Group, where the team completed the strategic acquisition of nine industry-leading enterprise software companies and leveraged their synergies to build two powerful new entities: Magnitude Software and Upland Software. Magnitude Software offers a family of award-winning solutions for enterprise performance management, master data management and data connectivity. Upland Software (Nasdaq: UPLD) went public in late 2014 and is a leading provider of cloud-based enterprise work management software with over 2,000 active enterprise customers and more than 235,000 active users in more than 50 countries.

Prior to co-founding Silverback, Ney was CEO of a series of Trilogy/Versata portfolio software companies. He previously served as Chairman of the Board, CEO and Founder of CoreTrac, a financial services CRM software company. Ney began his career working for investment banking firms Lehman Brothers and UBS.

He holds a Bachelor’s Degree in Economics from Texas A&M University.

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Rik Thorbecke

Chief Financial Officer

Rik oversees finance strategy and operations, risk management, legal, IT and sales operations.

As CFO, Rik leads a team focuses on effective business partnerships that drive continuous improvement in business process and technologies. He is an experienced CFO, COO, and Advisory Board Member with broad, global leadership experience in the software, SaaS, internet, cloud, telecommunications, and electronic manufacturing industries. Rik is skilled in strategic finance, mergers and acquisitions, IPO readiness, business planning, investor relations, enterprise software, entrepreneurship, and international business. He is a strong business development and customer-oriented executive.

Rik spent 25 years in various executive finance and strategy roles at a number of well-known public and high-growth private companies, including Electronic Arts, Equinix, and Levi Strauss; he was also CFO of Plastic Logic, Meltwater and Mirantis. He started his career at PwC where he became a partner in the global technology practice based in the Amsterdam office. In 1999 he moved to the San Jose, California office where he served as partner in the Software and Internet practice. Following the path of many expatriates he, his wife and three children decided to call the San Francisco Bay Area their home ever since.

Rik holds a Double Bachelor’s of Science Degree in Marketing and Economics, a Master’s of Science Degree in Business Administration and a Post Graduate Degree in Accounting and Auditing from the University of Amsterdam, the Netherlands. Rik is also an active California CPA.

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Kevin Mischnick

Senior Vice President,
Finance and Accounting

Kevin oversees global financial operations for Magnitude Software.

Bringing more than 25 years of financial experience to Magnitude Software, Kevin is responsible for a number of areas of the business, including Finance, Accounting, Legal and Information Technology.

Kevin’s background includes building and transforming financial teams into high-performing units, implementing systems and processes focused on cost savings and efficiency, and raising nearly $100 million in investor capital. He served as Senior Vice President of Finance for Multimedia Games Inc. and Capstar Broadcasting Corporation. Under his financial leadership, the market values of both companies increased more than tenfold.

Kevin is a certified public accountant and holds a Bachelor of Business Administration in Accounting from Texas Tech University.

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Laurie Dahlgren

Laurie Dahlgren

Global Vice President, People Operations

Laurie oversees HR strategy, talent acquisition, employee engagement and organizational development.

As Magnitude Software’s global people operations leader, Laurie drives initiatives that empower an engaged, high-performing workforce, in alignment with business goals and in support of rapid business growth.

Laurie brings extensive leadership experience across multiple industries and companies at different stages and sizes, including working with employees in 30 countries across 70+ locations. Prior to joining Magnitude, Laurie served as Vice President of People at Mirantis, a leader in open cloud infrastructure. Previously, she was Vice President of Human Resources at Meltwater, a global SaaS company engaged in media intelligence. She held leadership roles with several Silicon Valley venture-backed, technology companies before relocating to Austin, TX in 2017.

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Bill Stephens

General Manager, Magnitude Applications

Bill leads the Magnitude Applications business, driving strategic direction, product and service execution, revenue growth and customer engagement. His expertise within the commercial and public sectors – from Fortune 100 to SMBs – enables Bill and his team to consistently enable customers to extract the right value from their ERP systems working with their own tools and business processes and with third-party technologies.

A seasoned IT and consulting executive with a 20-year track record leading teams to drive customer success across diverse industries, Bill previously served as BIAS’ Vice President of Services overseeing the successful delivery of solutions across the Public Sector and Commercial markets. Prior to BIAS, Bill served for over a decade at Oracle Corporation as an applications consultant, project manager, senior operations director, and consulting executive.

He developed the foundation of his leadership skills while serving as a Cavalry Scout in the Kentucky Army National Guard.

Bill holds a Bachelor of Science in Finance from the University of Louisville.

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Tony Fisher

General Manager, Magnitude Integration

Tony leads the Magnitude Integration business, driving strategy, revenue, product and operations as well as leveraging and integrating our Simba- and Innowera- based technologies for new Magnitude solutions.

An accomplished data management and big data marketplace leader, Tony previously served as the SVP, Business Development & Strategy at Zaloni, an award-winning enterprise data lakes management provider; prior to that role, he was Vice President, Data Collaboration & Integration at Progress Software, where he led the business line’s strategic direction and operations.

Prior to Progress, Tony was the CEO of Dataflux Corporation. He also served as Director of data warehouse technology at SAS. A key technology leader at SAS, Tony provided the engineering research and development direction that helped make SAS the market leader in data warehouse software sales.

Tony earned a Degree in Computer Science and Mathematics from Duke University.

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Darren Peirce

Chief Technology Officer

Darren spearheads the development, execution and management of strategic opportunities and key customer accounts across our portfolio.

As Magnitude’s technology guru and evangelist, Darren is critical to building on our position as a leading provider of software and services that help organizations tackle the challenges and opportunities inherent in digital information management.

Previously, Darren served as CTO and Group Vice President of Product Management at Kalido; prior to that role, he was the Lead Solutions Architect and Manager of Professional Services in the United Kingdom. He also worked in senior consulting positions for companies such as Royal Dutch Shell and British Telecom.

Darren received a degree in Management from Intec College in Cape Town, ,South Africa, and studied Economics at the University of Stellenbosch.

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Mihir Shah

Executive Vice President,
Corporate Development and Strategy

Mihir is responsible for Magnitude Software’s acquisition and organic strategy.

Mihir has over a decade of experience leading acquisitions and strategy. During this period, he led several public and private company acquisitions, divestitures, and minority and majority equity investments.

Previously, Mihir was M&A Executive for IBM’s Information Management Software division, executing IBM’s inorganic strategy through M&A and strategic partnerships. He also served as Operating Executive for private equity firm, Golden Gate Capital, and as Vice President for Corporate Development at Aspect Software.

Mihir holds an MBA from the University of Chicago Booth School of Business and Master of Science from Worcester Polytechnic Institute.

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Karen McPhillips

Vice President,
Marketing

The mind that opens to a new idea never returns to its original state

Karen McPhillips drives marketing strategy and operational execution to grow the company profile, revenue and market position.

Leveraging 20+ years of transformational marketing experience, Karen fuels Magnitude’s corporate and existing portfolio marketing, collaborating to maximize the company’s business strategy while also supporting integration of acquired products and services.

Karen has served on leadership teams of public and private companies of all sizes, transforming marketing functions and generating both tangible and intangible value. Most recently at PlumChoice, she and her team repositioned the brand and metamorphosed the marketing function in support of the company’s pivot from IT support provider to leader in the cloud services and Internet of Things spaces. At Iron Mountain and its technology arm, Iron Mountain Digital, she created new marketing functions, introduced the marketing operations discipline, and spearheaded a closed-loop leads-to-revenue framework coupled with a brand-to-demand communication platform that raised the bar on marketing’s revenue influence. Prior to Iron Mountain, Karen held marketing leadership roles with SaaS back-up leader, Connected Corporation (acquired by Iron Mountain), and SilverStream Software, contributing to the company’s IPO and acquisition by Novell.

Karen earned a Bachelor’s degree in Journalism from St. Michael’s College in Vermont.