Operational risk capital
It is well-known that any risk management activity is a cost to the organization. However, optimized risk management practices satisfy regulatory capital requirements and gain the confidence of investors...
The largest US banks and systemically important financial institutions are required by regulatory mandate to estimate the operational risk capital they must hold using an advanced measurement approach...
This three-part series looks at the various factors that firms across the ecosystem of global FX markets - from the buy-side, the sell-side, and the supporting community of technology vendors and service providers - should consider in order to, not just survive, but to thrive in this dynamic and ever-changing environment.
More Operational risk capital articles
Basel Committee overhauls standardised approaches
Huge losses will affect risk modelling and capital calculation
Cluster of huge fines calls for changes in models and regulation
Paper focuses on dealing with sparse data
The quantification of diversification benefit plays a critical role in quantitative risk models, especially within the context of regulatory and economic capital. However, the complexity of today's risk...
Delayed impact of 2008 crash means higher capital demands
Increasing spread of operational risk losses linked to fines in this year's survey of op risk at the world's 100 largest banks
ORX chairman says Basel II definition is fundamentally flawed
Higher capital requirements would incentivise banks to fix their problems more than fines, says Craig Spielmann at RBS
Paper of the year: JD Opdyke and Alexander Cavallo
This whitepaper reviews the fundamental changes of Liquidity Risk Management under Basel III. It discusses how institutions can meet the regulatory requirements on liquidity risk management by enhancing their liquidity risk analytics, funds transfer pricing methodologies, liquidity stress testing frameworks, and enterprise risk management platforms.