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.

Defining liquidity risk

When will firms start realising that liquidity risk contains operational risk? David Benyon argues that companies ignore this link at their peril, and looks towards a more all-encompassing approach to its management

Reality bites

Op risk management no longer sits solely in the theoretical space, and has been brought down to earth with a thud. Patrick de Fontnouvelle of the Federal Reserve Bank of Boston predicts 2010 will be a year of focusing on the practicalities of…

Dutch banks take a new look at risk

Dutch banks were considered to be among the best and safest in the world, but now they are reducing their global presence and concentrating primarily on their home market. Boris Agranovich looks at what went wrong and at the local risk management…

Active risk control

Richard Bibb explores the pitfalls of value-at-risk statistics and explains how they can be interpreted and incorporated into a meaningful risk management strategy

Can reputational risk be measured

Reputational risk will often come hand in hand with operational risk, but it has yet to be taken as seriously, if it is even considered at all. David Benyon finds out why, and asks what might be done to resolve this situation

Coming of age

$urendra Naidoo, risk management director and group head of operational risk at Standard Bank, believes the operational risk function can claim success when the firm’s business managers are educated to the level where they manage op risk themselves

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