Operational risk
WHAT IS THIS? Operational risks are those arising from people, processes and systems – the biggest form of exposure for many industries, but one that was neglected by financial firms until the collapse of Barings Bank in 1995. It was added to the Basel capital framework in 2004, but attempts to model operational risk were dealt a heavy blow by the huge, unforeseen losses suffered by banks in the aftermath of the financial crisis.
Demands on loss consortia changing, says BBA and consultancy
British Bankers' Association launches co-operative effort with RiskBusiness
Op risk responsibility: The buck stops with everyone
A problem shared...
Ferma and ECIIA launch guidance on EU company law directive
Independent mentality is essential as EU broadens the role of audit committees
Middleware at fault for Barclays clearing break
Middleware at fault for Barclays clearing break
IOR issues new guidance on governance in risk management
OR&R gets an exclusive preview of guidance paper from the Institute of Operational Risk to be issued on 15th.
ORX surveys finds scenarios are thriving
The Operational Risk Data Exchange (ORX) recently surveyed its members about their use of scenarios in managing operational risk, and discovered firms attribute considerable value to the process
Asset managers feel the op risk pressure
Increased regulatory scrutiny combined with investor demand for better transparency and corporate governance standards is driving improvements in the way operational risk is managed at asset and fund management businesses since the events of the…
Mizuho provides a model model for AMA in Japan
Japan’s regulator points to Mizuho Financial Group’s operational risk management model as an example for banks in the country to follow. Shigehiko Mori, the group’s head of operational risk, talks about how the model works and his plans for continued…
BP’s Gulf of Mexico oil spill will not push fuel switching
Experts quash fears that tighter restrictions following BP’s Gulf of Mexico oil spill will result in oil to gas fuel switching in the US, thus pushing up gas prices
Data and systems top concern for op risk managers, says survey
Survey responses from more than 50 op risk managers suggest data and systems management is the leading concern, rather than adopting an enterprise risk management framework, which was flagged as the top issue in last year's poll
Brazil poised for real change on Basel II
Brazil is justifiably proud of the progress it had made in the implementation of Basel II, due for completion in 2013. However, a sudden increase in lending is raising a host of data issues and diverting management’s attention away from operational risk
ANZ's Page: The op risk manager is the goalkeeper
Chris Page, group head of risk management at ANZ, sees his role as “guardian of the balance sheet” as first and foremost, but is also aware that sometimes he needs to stand his ground on risk issues, as he might be the last man standing between the bank…
Cebs responds to critics with new op risk paper
Committee issues second consultation paper to address concerns over level of detail in op risk guidelines on market-related activities
Change is the only constant
Regulatory change is inevitable, but those in Basel say they are taking it slow
Cebs updates op risk compendium; internal governance guide coming
Updated op risk compendium contains guidelines on op risk mitigation; internal governance guidelines on the way
More than 2,500 UK end-users at risk of fines over carbon rules
More than 2,500 UK end-users could be stung with a hefty fine from the UK government, as a substantial number of executives at the country’s top firms admit they are unaware of the mandatory CRC Energy Efficiency Scheme, reveals a new report
BP’s oil spill to tighten global oil supply - report
BP’s Gulf of Mexico oil spill will tighten global oil supply as US oil production is set to wane, following expectations the disaster will lead to stricter regulation and closer scrutiny of drilling operations in the US, say Barclays Capital
Cultural shift needed to embed data security enforcement
Data security awareness lacking in financial services despite big budgets
Chinese banks’ AMA op risk projects on hold
AMA projects on hold as Chinese banks get to grips with credit risk portion of Basel II
31% of oil and gas firms lack ETRM solutions
Nearly one third of all oil and gas companies are more susceptible to systemic risk, as a report reveals 31% of these firms lack an energy trading and risk management (ETRM) solution for their operations
HKMA issues incident response and management procedures
HKMA reminds firms of their requirements in response to incidents affecting customers
Cebs updates operational risk market guidelines
New paper in response to feedback “an improvement”