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.

Raft forms user group for Radar op risk products

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.

Raft forms user group for Radar op risk products

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.

Regulators want active dialogue on op risk

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.

Op risk modelling evolves

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.

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