Risk ratings ignore soft barrier protection and make differentiation difficult
European authorities’ risk scale “too conservative”, says trade body
This paper discusses the violation of applicable firm guidelines by individuals employed by a bank or financial institution and suggests specific metrics to identify and prevent such behaviour.
Consultation responses expose fault lines between banks and insurers
Basel Committee considers recalibrating the simpler approaches to op risk measurement but says changes will happen later rather than sooner
Convergence is a clear goal for many in the industry, but uniform implementation is proving tricky, finds the latest survey from OpRisk & Compliance and Ernst & Young
Since 1999, Peter Hughes has led a team of op risk specialists that has studied transaction processing environments in global banking organisations. The focus was on examining and understanding the causes of operational failure. The information and benchmark...
Operational risk management is a management programme, not just a modelling exercise, according to Jonathan Howitt, director of operational risk at investment bank Dresdner Kleinwort Wasserstein in London.
Indicators of operational risk are not for the faint of heart, nor are they necessarily bearers of good news. But used properly and effectively, they can help businesses identify potential losses before they happen.
There's little surprise, but reactions still range from cautious approval to outright hostility. And all sides agree that some very big loose ends remain to be tied up on a very tight schedule.