Skip to main content

Operational risk

Age of reason or age of procedure?

The risk management industry's increasing use of sophisticated models and technology – when coupled with poor modelling choices – can cause problems. Stephen Blyth calls for a return to to judgement and reasoning, and a halt to proceduralism.

The misdirected directive?

Germany's financial regulator, BaFin, tried to steal a march on its European rivals by implementing a new directive that should open the door to asset managers investing in new products and using over-the-counter derivatives. But did it get it wrong?

FSA vague on AMA waiver pack approach

The UK Financial Services Authority is remaining tantalisingly vague about its potential approach to a waiver pack for those banks who wish to apply for the advanced measurement approach (AMA), say industry executives.

Sponsor's article > Op risk and Black Swans

Scarce data is a well-recognised problem for the assessment of operational risk. In such circumstances, David Rowe argues, it is necessary to blend professional judgement with the available data. In doing so, however, it is crucial to counter some well…

Increasing returns through managing risk at source

The world's largest pension fund, Calpers, has adopted an aggressive approach to corporate governance. Can this policy decrease risk and increase returns in its equity portfolio? Rachel Wolcott speaks to Christy Wood, who runs the fund's corporate…

EU Rules may shake up equity data

In a move that shows no good deed goes unpunished, industry associations and insiders want to nix a current European Union proposal to improve trade reporting transparency because the new regulation will have a host of unintended consequences.

Sponsor's article > The Home Host Headache

Basel II's advanced measurement approach (AMA) requires that the operational risk capital charge be allocated to banks' international subsidiaries. This means that individual banks will have to run multiple AMA models to meet multiple local regulatory…

UK FSA calls off 'Systems and Controls', industry irate

The UK's Financial Services Authority announced at the September meeting of the Operational Risk Standing Group (ORSG) that it would be delaying, until further notice, the implementation of the Prudential Sourcebook text for 'systems and controls'.

NZ regulator warns over Basel II

New Zealand's top banking regulator advocated the implementation of a strong corporate governance framework by host regulators under Basel II in a mid-August speech. New Zealand's foreign-owned banking system is considered to be a model host regulator.

Critical voices

The final Basel II framework has been welcomed by banks, regulators and industry bodies around the globe, but there are still some concerns about certain aspects of the Accord. Bob Pickel, chief executive of Isda, gives the association's views on the new…

HKMA takes the lead

The Hong Kong Monetary Authority has put together its national implementation guidelines for Basel II, making it one of the first regulators globally to detail its qualifying criteria for those banks aiming for the internal ratings-based approaches in…

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here