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.
Briefs
MANAGEMENT INTELLIGENCE
Regulators eye equity derivatives
MANAGEMENT INTELLIGENCE
Isda survey finds error rates rising
MANAGEMENT INTELLIGENCE
MiFID documents release delayed as FSA waits on EU
MANAGEMENT INTELLIGENCE
New US NPR questions
The US notice of proposed rulemaking (NPR) has finally been published.
The fat tail
Minh-Tri Nguyen and Martin Ottmann aim to quantify op risk with multi-stage curve fitting and extreme value theory applied with the loss distribution approach
Briefs
MANAGEMENT INTELLIGENCE
FESE issues new briefing paper
MANAGEMENT INTELLIGENCE
Concerns raised over patent-related op risks
MANAGEMENT INTELLIGENCE
Operational risk spending increases
A new survey finds increased spending on op risk technology and replacement of first-generation solutions. By Protiviti's Scott Gracyalny and Scott Wisniewski
$24bn outsourcing growth for 2006
MANAGEMENT INTELLIGENCE
US Basel II gone AWOL
Well, has Basel II finally ridden off the rails in the US? This seems to be the case. The inclusion of a new study on Basel II, to be conducted by the General Accounting Office, does rather seem to threaten the timetable that the US regulators announced…
Fundamental issues in op risk management
Misconceptions about certain key concepts are causing confusion throughout the industry. By Ali Samad-Khan, Armin Rheinbay and Stephane Le Blevec
Could do better?
Some industry participants believe US supervisors' approach to Basel II implementation is flawed, according to a survey by OR&C . By Ellen Davis
The Basel II Race
Accessing operational risk is vital for any bank that wants to reach Basel II compliance.
Operational risk and compliance
One of the attractions of working on operational risk is the variety of the subject matter that is generally categorised under that heading. Op risk covers a series of diverse risk drivers. Examples are fraud, processing issues, and legal and regulatory…
Dealers putting more money into operations
MANAGEMENT INTELLIGENCE
Regulation driving expenditure
MANAGEMENT INTELLIGENCE
The great Basel II debate continues
Regulators have earned mixed reviews on Basel II implementation. By Protiviti's Angela Isaac and Cem Baydar
Briefs
MANAGEMENT INTELLIGENCE
The fundamentals of operational risk assessments
In the third of a series on scaling operational risk management for the small to medium-sized institution, Eric Holmquist discusses the fundamental elements to consider when developing an operational risk assessment where the emphasis is on process…
Who's buying?
Operational risk derivatives are being reconsidered as a solution to banks' distrust of op risk insurance policies, but the market for these is yet to develop. By Duncan Wood