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.
OpRisk Asia: regional growth could undermine ORM, conference hears
Continuing growth in the Asian market means expansion could override caution in operational risk
OpRisk Asia: regulatory change bigger than it looks for operational risk
Regulatory reforms seem to have left operational risk untouched, but in reality they mean substantial changes
Bank of America appoints new chief technology officer for GWIM unit
BofA has appointed David Reilly as its chief technology officer for its GWIM unit
Stockton retires from FRB
David Stockton will be retiring from the FRB ths year after 30 years of service
SEC appoints Lewis as director of RiskFin
The SEC appoints Craig Lewis as its chief economist and director of the risk, strategy and financial innovation division
Triffitt becomes risk director at KPMG in London
KPMG has appointed Giles Triffitt as risk director in its risk management division in London
SEC accuses China Voice founder of fraud
The SEC has charged China Voice CFO and associates with fraud
SEC charges Madoff employee with fraud
Longtime Madoff employee Eric Lipkin is charged by SEC in connection with Madoff Ponzi scheme
FSA fines Bank of Scotland for mishandling customer complaints
The FSA has fined Bank of Scotland for mishandling customer complaints relating to retail investment products
Theye charged with multimillion-dollar Ponzi scheme
CFTC charges Austin man with defrauding investors in a multimillion-dollar Ponzi scheme
Egan and McGarry sentenced over $60 million fraud
Two New Yorkers have been handed prison terms for their part in a $60 million fraud
Central clearing: safe as houses?
New regulations mandating the central clearing of OTC derivatives bring operational risks for central counterparties and increased exposure to systemic risk. In the second of a two-part series, ORR looks at the problems and opportunities for clearing…
BMO's David Fletcher: advancing on the AMA
In advance
Cole: FCA will be more interventionist than FSA
Margaret Cole of the FSA tells participants at a CSFI event that a change in culture from the FSA to the FCA will allow for a more proactive regulator
Lloyds abandons AMA
Lloyds has abandoned the AMA after trying to combine two models, losing key staff and coming under scrutiny from regulators
Robust estimation of operational risk
Research Papers
Op risk needs greater R&D effort, say US regulators
Senior Fed regulators call on banks to restart research into op risk management
OpRisk Europe: Reporting key to competent risk management
Reporting is key to competent risk management, yet is often neglected, New York Fed op risk specialist warns
OpRisk Europe: Fairness fights fraud, conference told
Firms can mitigate the risk of employee fraud by paying attention to their infrastructure and culture and also to the employees themselves, according to psychologist Adrian Furnham
Industry resists Dodd-Frank real-time reporting
While the Dodd-Frank Act calls for real-time trade reporting, industry insiders argue it will be misleading
OpRisk Europe: Incorporating legal risk "not a done deal" at Deutsche
Rob Nagra of Deutsche Bank tells of the tough journey Deutsche have had to get legal risk recognised as operational risk, while another international bank has found it easy