BONN, GERMANY - Many of Germany's banks have been somewhat slow to prepare their operational risk management framework for the new international bank capital accord, Basel II, and the prospective European Union (EU) Capital Adequacy Directive (Cad).
Are there common features among exceptional operational risks beyond their defining characteristics of rarity and severe consequences?
Junji Hiwatashi and Hiroshi Ashida of the Bank of Japan outline a practical framework for operational risk management, derived from research and experiences in Japan's financial community.
NEW YORK — Continuous Linked Settlement, the new settlement service for foreign exchange, settled a record $1 trillion in FX payments on February 18.
The Risk Management Group of the Basel Committee on Banking Supervision today released the final 'Sound Practices for the Management and Supervision of Operational Risk'.
In this second and final paper on the scorecard approach to operational risk, Dresdner Bank's Ulrich Anders and Michael Sanstedt discuss the logistics of preparing and implementing the self-assessment questionnaire, before discussing the advantages and…
Operational risk management is a management programme, not just a modelling exercise, according to Jonathan Howitt, director of operational risk at investment bank Dresdner Kleinwort Wasserstein in London.
US firm OpRisk Analytics, Canada-based Algorithmics, and UK company Raft International are leading the operational risk vendor market, according to a report published in January by management consultancy Lepus.
Fitch Ratings has added a range of new services to its OpVar software suite, an operational risk management quantification tool. Version 5.0, scheduled for release in March, now offers an enhanced data collection module and improved data management…
Operational risk scorecards have been in the spotlight since the Basel Committee on Banking Supervision’s 2001 paper on op risk treatment under Basel II. In the first of two articles, Ulrich Anders and Michael Sandstedt of Dresdner Bank examine what,…
Collecting and storing appropriate operational risk data remains a problem for technology managers and operational risk managers alike. Is any progress being made?
LONDON - The operational risk loss database run by the Operational Riskdata eXchange Association (ORX), a consortium formed by 12 international banks to pool their op risk data confidentially, is expected to begin operating around the start of February,…
Many banks are not effectively applying risk tools when pricing and structuring deals, according to research and consultancy company PA Consulting.
Many German banks lag behind their peers when it comes to operational risk management. The proposed new international bank capital accord, Basel II, which - for the first time - stipulates a separate capital charge for operational risk, has put the topic…
LONDON – London-based operational risk management software firm Amelia Financial Systems said today that London Bridge Software Holdings plc had acquired a stake in the company of less than 20%. However, they declined to give a specific figure.
BASEL, SWITZERLAND - Global banking regulators said there was a good response from banks to the operational loss data collection exercise that the regulators launched in June to help them refine the op risk aspects of the Basel II bank accord aimed at…
LONDON – Risk management software provider Raft International said it has formed a user group for firms using the various modules of its Radar suite of operational risk tools. The first Radar User Group meeting will be on September 5 in London.
Risk management software provider Raft International has formed a user group for firms using the various modules of its Radar suite of operational risk tools. The first Radar User Group meeting will be on September 5 in London.
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