Op risk at a fork in the road, says Seivold
SINGAPORE – Op risk has reached a crossroads, according to Alfred Seivold, senior examiner at the Federal Deposit Insurance Corporation, speaking at the annual OpRisk Asia conference in Singapore.
Seivold said the discipline has lost some of its direction, but that the lack of prescriptiveness around op risk rules by regulators is not the primary cause of this. He pointed out that firms had initially asked for a wide latitude in developing their operational risk frameworks, and were pleased when the Basel Committee on Banking Supervision said it wanted to allow "a thousand flowers to bloom".
However, he did say there have been complaints that regulators have been too focused on the
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