Operational risk
WHAT IS THIS? Operational risks are those arising from people, processes and systems – the biggest form of exposure for many industries, but one that was neglected by financial firms until the collapse of Barings Bank in 1995. It was added to the Basel capital framework in 2004, but attempts to model operational risk were dealt a heavy blow by the huge, unforeseen losses suffered by banks in the aftermath of the financial crisis.
Could one-off loan losses at US regional banks become systemic?
Investors bet Zions, Western Alliance are isolated problems, but credit risk managers are nervous
Chicago data centre outage forced clearers to turn away clients
Friday’s cooling system failure highlights cracks in tech and concentration risk of big CCPs
Op risk data: Ghost of Madoff still haunts HSBC
Also: Giant loan frauds hit three global banks, and AWS outage casts a cloud. Data by ORX News
Treasury market urged to beef up operational resilience plans
NY Fed panel warns about impact of AI and reliance on critical third parties
Determining the perception of operational risk management practices based on demographic factors in the South African banking sector
The authors present and analyse a survey of various demographic groups and their perception and understanding of risk management in South African banks.
Breaking silos: agile insurance in an uncertain world
Insurers are realigning strategy and operations in the face of growing uncertainty and more complex risk
How has the anti-corruption campaign affected operational efficiency? Evidence from a quasi-natural experiment in China
The authors analyze how China's anti-corruption campaign impacted operational efficiency, and offer suggestions for policymakers in emerging economies hoping to improve corporate performance through institutional reforms.
Has the Collins Amendment reached its endgame?
Scott Bessent wants to end the dual capital stack. How that would work in practice remains unclear
How conflict sharpened Israel’s role in cyber security
Recent growth in offshoring of infosec comes despite regulatory focus on supply-chain resilience
Global banks ‘hassled’ by China’s mystery data rules
Some firms left in the dark as new guidance on exporting data overseas is distributed bilaterally
How FCA could help tackle third-party risk in AI
UK regulator’s supercharged sandbox is designed to boost explainability and reduce reliance on vendors
Op risk data: For Yes Bank, no mercy over insider fraud
Also: Cracking Brazil’s Pix hacks, Macquarie fund fumble, and taxing time for Crédit Agricole. Data by ORX News
Credit Suisse AT1 ruling may only benefit a third of bondholders
Swiss law may mean only bondholders who appealed writedown get compensation, if there is any
Basel III adoption gap widens as Turkey and India stall
With just a third of jurisdictions fully compliant, progress on the post-crisis banking reforms remains uneven worldwide
First line of defence dominates third-party risk management
1LoD survey finds 86% of control functions think they have sole responsibility for vendors
Fewer than half of banks rate their GRC vendor as ‘good’
Enterprise Risk Benchmarking study shows banks juggling multiple systems, adding costs and complexity
71% of banks automate escalation of appetite breaches
Automated processes are less common at banks where ERM sets overall risk appetite, research shows
North American banks outpace Europeans in ERM
New research shows US, Canadian banks have more developed enterprise risk management functions
Banks treat ERM as compulsory – even when it isn’t
More than 80% follow supervisory guidance or expectations for ERM, benchmarking shows
Enterprise risk managers: police or foot soldiers?
With more than 5,000 data points from 37 banks, our first ERM Benchmarking exercise shines a light on very different missions
Ice Credit below availability target after six-hour op failure
May 5 outage longest since public disclosure began in 2015