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.
Basel II and Basel III: Top articles from Risk.net
The ink was hardly dry on Basel II when the international financial crisis saw that agreement being ripped up and recreated as Basel III.
IOR opens Asian chapter
The Institute of Operational Risk hopes its new Hong Kong chapter will enhance the profile of operational risk management in Asia
Staff retention poses problems in operations depts, says Marex head
Internal departures can create a 'revolving door'
French banks under pressure to hold more op risk capital
Rogue traders and a worsening financial crisis are leading French regulators to put pressure on banks to hold more capital for op risk
Turning points: Nick Cioll, CRO, CFO of TriEagle Energy
Nick Cioll, CRO and CFO of TriEagle Energy, speaks with Pauline McCallion about the turning points in his career that led him to blending his skills in finance and energy risk management
Circuit breakers to stem NYSE trading falls
A 10% move in a stock price would trigger a pause in trading to prevent sudden falls
Moody’s widens op risk definition for securitisation
Ratings agency breaks down boundaries of counterparty, credit and liquidity risk
Firms scrimp on insurance despite rise in claims
Survey finds European firms aligning insurance packages with their risk profiles
New kids on the block
As the traditional retail banking giants struggle to stay afloat, a new breed is rising to the surface
Learning to Love Basel II
Introducing a major insurance element to operational risk management processes is a passion for National Australia Bank’s Ross Love.
Understanding the Operational Risk Consortium’s scenario approach
The UK’s Operational Risk Consortium (Oric) recently published a report on the use of scenario analysis of operational risk in insurers. Mariano Selvaggi describes the issues Oric took into account when making its analysis and why establishing a…
Penny Cagan in conversation with Jonathan Howitt
Algorithmics' operational risk expert Penny Cagan speaks with the Man Group's Jonathan Howitt on key challenges facing op risk executives globally
Investigations find no evidence of 'fat finger' errors in US trading fall
NYSE, SEC and CFTC claim 'fat finger' error not the cause of last week's stock market plunge.
Operational risk possible cause of US equity nose-dive
Fat finger error mooted as possible cause for US market plunge
To boldly go
Throughout its brief history, the operational risk discipline has been labouring under a limiting and perhaps inaccurate definition of what it is and what it should be covering. Op risk needs to broaden its remit across the enterprise if it is going to…
Sound scenarios
Mariano Selvaggi describes the issues the Operational Risk Consortium took into account when preparing its report on the use of scenario analysis of operational risk in insurance, and how a sound scenarios framework can benefit firms
Natural selection -- Software rankings
This year’s OR&R software survey shows that not only is operational risk management expanding way beyond its initial remit, but governance, risk and compliance is also establishing itself as a firm favourite among those looking to weather recent market…
Action reactions
At OpRisk USA 2010 participants discussed how they can deal with increasing waves of regulation and add value in the new financial environment.
Right place, right time
Eileen Robbins, vice-president in operational risk at the Depository Trust & Clearing Corporation, has a history of turning up just as things are kicking off. She talks to OR&R about the DTCC’s much-lauded handling of the Lehman Brothers collapse, and…
