
Banks short of op risk experts and analysis
Daily news headlines
LONDON – Investment banks are failing to fill op risk personnel requirements. There is a lack of expertise on staff, too much focus on day-to-day data collection and too little on data analysis, according to new research from operational consultant and software provider BCS.
The research – which focused on op risk and control within operations divisions – showed 65% of participants had not filled their op risk staff requirements. The staffing shortfall is exacerbated by labour-intensive, manual data collection and incident reporting, with inadequate investment in the mechanics of op risk and control processes.
“There’s an acceptance that people want to get from collection and reporting towards analysis and being proactive. People are so busy collecting data, collecting incidents and getting monthly reports out one way or another that they are less able to act pre-emptively,” says Jennifer Moodie, head of operational risk at BCS.
The least important priority was said to be governance – most firms claiming to have already implemented the structures upon which their risk reporting is founded.
"Everybody across the survey felt they did have their governance, structure and reporting very much in place, which wouldn’t have been the case if you’d asked that question three or four years ago,” says Moodie.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
EU banks ‘will play for time’ in stand-off over India’s CCPs
Lawyers say banks are unlikely to set up subsidiaries and will instead pin hopes on revised Emir fix
ECB mulls intervention on uneven banking book reporting
Inconsistency among EU banks on whether deposits and loans are in scope for credit spread risk
Iosco warns of leveraged loan ‘vulnerabilities’
As recovery rates plummet, report calls for clearer covenants and more transparency on addbacks
Narrow path to compromise on EU’s post-Brexit clearing rules
Lawmakers unlikely to support industry demand to delete Emir active accounts proposal altogether
The Fed’s stress test models are inaccurate. Something has to change
First step for US regulator to improve its bank loss forecasts would be to open up its models to public scrutiny, argue two banking industry advocates
Bankers call for overhaul of EBA stress tests
Support for multiple scenarios, but only if fixed assumptions and variables are scaled back
CFTC plan to relax MMF margin restriction sparks debate
Industry welcomes proposal to lift ban on repo-using funds as eligible IM, but some warn MMFs bring risks
Legal challenges loom for renewed US focus on Sifis
Lawyers say any FSOC attempt to designate systemic non-banks risks a repeat of MetLife case