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.
Cyber risks are silent, deadly and often mundane
Fear of submarine-like attack overshadows more dangerous, less scary cyber threats
Top 10 Operational Risks for 2016
Risk.net presents the Top 10 Operational Risks of 2016, as chosen by risk practitioners
Cyber is biggest operational risk fear, say practitioners
Regulator emphasis and high-profile attacks keep cyber threat top-of-mind
Nasdaq appoints Adena Friedman as chief operating officer, and other recent job news
Other news: Oric International; Investors Bank; Deutsche Bank; Aldermore; Ally Financial; Systemic Risk Council
Top five losses: JP Morgan fined for mis-advising, London Whale
Latest data on op risk losses from SAS (to December 31, 2015)
Banks left little time to amend ‘bad apples’ rules before SMR
Personal accountability rules will also see rise in internal attestations and impact on recruitment
Risk technology rankings 2015: Surgery, instead of plasters
Murex, Calypso, FIS take top spots as clients push for regulatory compliance
The client onboarding challenge: Getting to grips with 2016’s AML and KYC compliance risks
Sponsored webinar: Thomson Reuters
Diversification benefit of operational risk
Torresetti and Le Pera explore the relevance of the diversification benefit from a theoretical and practical viewpoint
Talent drought threatens risk management, say firms
“Most acute shortages” are in operational risk, say recruitment consultants
Banks say take-up of KYC utilities needs to improve
"Critical mass" needed before risk management benefits can be realised, firms say
Basel op risk reform proposal expected to be delayed
Consultation on scrapping operational risk modelling is now expected in early 2016
Leipoldt outlines problems of GRC implementation
Saudi Hollandi Bank's operational risk leader discusses implementation of governance, compliance and risk project
Risk management: different industries, different drivers
Energy firms get wise on credit risk; asset managers tackle op risk
Integrating KRI frameworks into risk assessments
Sponsored webinar: MetricStream
Operational risk: what do the regulators expect?
Ariane Chapelle offers some advice on how to avoid unnecessary scrutiny from supervisors
Basel Committee readies op risk and FRTB releases
Supervisors under pressure to finalise post-crisis reforms to capital rules
Modeling operational risk capital: the inconvenient truth
This paper shows that it is an "inconvenient truth" that the largest losses by banks are not firm specific.
Independent asset managers lag bank, insurer-owned peers on op risk
Capital requirements incentivise banks and insurers to enhance op risk management
Asset managers advance operational risk programmes
Independent asset management firms catching up with bank- and insurance-owned peers
Survey: Which op risks do you fear for 2016?
Your chance to shape our landmark annual forecast on operational risks
Application of the convolution operator for scenario integration with loss data in operational risk modeling
This paper addresses the uncertainty in scenario analysis and produces a combined loss distribution.
Best operational risk management software: IBM
Connectivity key to OpenPages' success
And so, farewell: David Rowe's final risk analysis column
After 16 years as our risk analysis columnist, David Rowe looks back at a recurring challenge