Fitch ramps up op risk ratings and tech divisions

New York -- US rating agency Fitch announced a new operational risk initiative at the beginning of January -- it is the second rating agency to launch a specific programme designed to evaluate firms’ operational risk frameworks. Competitor Moody’s, also based in the US, kicked off its own programme in January 2003, although it is now in the process of revision (see Operati-onal Risk, December 2003, page 13). Fitch Ratings also has a separate subsidiary, Fitch Risk, which owns an op risk database and performs consulting for clients.

Same old story?

In the report, The oldest tale but the newest story: Operational risk, Fitch says it is initiating a review of op risk at the financial firms it rates. "While Fitch has always implicitly assessed operational risk when assigning ratings, the agency is adopting a more formalised approach to its analysis and criteria," says the report. The report itself broadly outlines the agency’s expectations for op risk frameworks at banks.

In addition, "the agency is launching its efforts with