Op risk needs more weight in business decisions – NY Fed

Head of op risk supervisory team views tools as 'catalysts for change'

The NY Fed supervises enterprise risk at large, complex financial institutions

Instances of external loss are widely recognised to be an important weapon in the operational risk manager's arsenal. Among other things, the use of data on external loss events is required under the advanced measurement approach (AMA) to operational risk capital drawn up by the Basel Committee on Banking Supervision.

But Dennis Ryan, head of operational risk oversight for large institutions at the Federal Reserve Bank of New York, thinks external loss events can also be put to work more broadly