Loss data
Regulators grow confident about Basel II calendar
Global banking regulators were expected to issue an upbeat statement in mid-July on progress with the controversial Basel II bank accord after several months of uncertainty in which some bankers doubted the accord would ever see the light of day.
Measuring the Unexpected
The events of Sept. 11 brought increased attention and confusion to the practice of managing operational risk.
The Basle II capital accord: op risk proposals in brief
This summary has been updated to include the revisions to the Basle II op risk proposals contained in the Working Paper on the Regulatory Treatment of Operational Risk issued in September, 2001 and available on the Bank for International Settlements’…
Loss survey supports arguments against capital charges, say fund managers
London - The results of a survey by global banking regulators of banks’ operational loss experience support arguments against using capital charges as the main protection against operational losses in fund management and broker activities. This is the…
Approach with caution
Indicators of operational risk are not for the faint of heart, nor are they necessarily bearers of good news. But used properly and effectively, they can help businesses identify potential losses before they happen.
DrKW and Raft establish new op risk management standard
Investment bank Dresdner Kleinwort Wasserstein (DrKW) and Raft International, the component-based software provider to the financial services industry, have jointly developed and deployed Radar, a near real-time global operational risk management…
Good in parts
Tony Blunden welcomes the Basel regulators’ latest thoughts on operational risk, but questions their continued emphasis on the past.
Advanced measurement approaches
The September working paper on operational risk from the Basel Committee on Banking Supervision confirmed that global banking regulators are looking at a range of advanced ways of calculating op risk capital charges instead of a single method.
Data trouble
Regulators insist that they want a capital charge on banks’ operational risks. But the plan rests on the ability of banks to collect data and model the risks involved, and there’s a frightening lack of agreement on how to do that.
Basel survey signals focus of discussion paper
The focus of the operational risk discussion document planned by global banking regulators is signalled in a survey seeking information on banks’ losses from such hazards as fraud, computer system failure and trade settlement errors.
Basel discussion document will centre on internal measurement approach
Global banking regulators intend to issue in June or July a special discussion document on operational risk in the context of Basel II, the new capital adequacy accord proposed for large international banks from 2004.
A beginning, not an end...
There's a host of operational risk issues still to be ironed out by the global banking industry and its supervisors. Bank regulator Jeremy Quick considers the key questions.