London – Financial firms complying with the operational risk policy outlined today by UK financial regulators should be well prepared for the systems and controls needed under the Basel II bank accord and parallel European Union (EU) rules.
Protective capital is an incomplete line of defence against operational risk and effective op risk measurement and management should amount to more than just a capital allocation exercise enforced by regulators, a leading credit rating agency said in…
The events of Sept. 11 brought increased attention and confusion to the practice of managing operational risk.
Case study: NYBOT
The Basel Accord
BASEL - Active dialogue between banks and their supervisors is the key to the continued development of approaches to managing operational risk, global banking regulators said in a much-delayed paper on op risk sound practices issued in December.
This summary has been updated to include the revisions to the Basel II op risk proposals contained in the Working Paper on the Regulatory Treatment of Operational Risk issued in September, 2001 and available on the Bank for International Settlements'…
Bankers generally responded positively to the guidance on sound practices for managing operational risk issued by global banking regulators in December.
Operational risk is devilishly difficult to model, but dealers and software vendors are making headway. Automated op risk reporting, profiling and sophisticated operational value-at-risk (VAR) modelling are finally beginning to catch-on in banks.
Investment bank Dresdner Kleinwort Wasserstein (DrKW) and Raft International, the component-based software provider to the financial services industry, have jointly developed and deployed Radar, a near real-time global operational risk management…
BASEL - The discussion document on operational risk expected in September from global banking regulators will try to cover all the concerns raised by bankers about this controversial aspect of the Basel II banking accord, regulators said.
The sophistication of analytical software for managing operational risk will increase dramatically over the next year. Such was the message delivered by Charles Smithson, managing partner of financial consultants Ritter Associates, to the annual risk…
TECHNOLOGY & INTEGRATION