Future risks for 2013 – What does the risk landscape look like?
We demonstrate the operational risk associated with type II errors in typical lending decisions made by banks. Type II errors occur when loan officers misidentify healthy borrowing firms that are not destined...
The definition of operational risk given by Basel II is problematic when applied to institutions, since the risk only represents a potential loss. Staff and systems are considered to be the causes of losses,...
The Certificate in Quantitative Finance is a global quant program that focuses on teaching practical quant techniques used in risk management.
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More Operational risk articles
This paper illustrates how fuzzy logic can be helpful for constructing event-type variables in operational risk management. Even when the available databases cannot be considered "native" fuzzy, we show...
In this paper we discuss operational risk modeling and consider a general Bayesian context incorporating information on market risk profile, expert opinion and operational losses, taking into account the...
Top 10 op risks: Failure to enforce internal controls
MEP Kay Swinburne warns that CRD IV is becoming too diluted by national exemptions
SEC chair Mary Schapiro steps down a week after former inspector-general files $20 million lawsuit against the agency
The UK FSA fines UBS for failures in systems and controls leading up to Adoboli's $2.3 billion losses
China's absence from IGA negotiations could mean a standoff once withholding starts
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.