Skip to main content

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.

head-of-cogs

All under control

Jeff Roth and Wally Musegades outline how it is possible to reduce exposure through active control management, and for the op risk function to make a positive contribution to business results

Laptop crime scene illustration

Laundering goes virtual

Multiplayer sites such as Second Life might have started out as a bit of innocent fun, but the potential for criminals to use them for underhand financial means demands serious consideration

bbva-head-office

Spanish sensibility

BBVA's global head of operational risk, Jordi Garcia, takes a pragmatic, hands-on approach to managing the Spanish bank's op risk. Duncan Wood talks to this veteran of the industry about the unique quality of Spanish loss data, Basel II and life at the…

A man's hands sticking through prison bars

The Feds are coming

Regulators in the US are cracking down on banks in their stringent anti-money laundering campaign. Nick Kochan looks at the civil penalties being imposed on financial institutions and wonders whether they are entirely justified

Capitol Hill in Washington DC

Look to risk management

With regulators' showing no mercy for non-compliant firms, now is the time to strengthen risk management and compliance departments

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here