Scenario analysis
Asset managers feel the op risk pressure
Increased regulatory scrutiny combined with investor demand for better transparency and corporate governance standards is driving improvements in the way operational risk is managed at asset and fund management businesses since the events of the…
Risk roulette on eurozone scenarios
The European Union and International Monetary Fund agreed a €750 billion emergency loan package in early May, aimed at averting a sovereign default and wider crisis across the eurozone. Nonetheless, banks have been preparing for the worst, stress testing…
Sound scenarios
Mariano Selvaggi describes the issues the Operational Risk Consortium took into account when preparing its report on the use of scenario analysis of operational risk in insurance, and how a sound scenarios framework can benefit firms
Right place, right time
Eileen Robbins, vice-president in operational risk at the Depository Trust & Clearing Corporation, has a history of turning up just as things are kicking off. She talks to OR&R about the DTCC’s much-lauded handling of the Lehman Brothers collapse, and…
Banks run eurozone crisis scenarios as Greece founders
With markets anticipating a Greek debt restructuring, bank traders and risk managers are preparing for a wider crisis that could drag in northern European countries, tip the euro into a tailspin or even threaten the eurozone’s integrity.
A sting in the tail
After recent financial turmoil, market participants are thinking much more rigorously about ways to protect themselves against the possibility of rare but extreme events. However, effectively hedging tail risk is not straightforward. By Mark Pengelly
A common language
Goldman Sachs’ operational risk management department has two global co-heads, Spyro Karetsos and Mark D’Arcy, who together are using a ‘Rosetta Stone’ approach to break down operational risk language barriers between business lines.
The case for scenarios in op risk loss databases
Scenario analysis is gaining in popularity following the crisis and loss data consortia are quick to cater for this renewed interest
Oric sets benchmark operational risk scenarios
Op risk loss database consortium for insurers publishes scenario benchmarks
Goldman Sachs uses scenarios to study reputation risks
US investment bank Goldman Sachs is pioneering scenario analysis as a tool for managing reputational risk
RBS creates task force to drive AMA standard
RBS has launched on an efficiency drive to boost operational risk data collection and save money
StanChart's Cherriman harnesses people power
Andrew Cherriman, head of operational risk management for wholesale banking at Standard Chartered Bank in Singapore, says his ability to rely on expert staff is the key to operating a sound risk management system across the bank’s many jurisdictions.
Being stressed is good for you
Increased regulatory focus means stress testing can no longer play a minor role in banks’ strategic thinking and capital considerations. Many institutions require cultural and procedural change to make this happen, but are they capable of bringing it…
Make it personal
Operational risk managers need to do more than merely collating and analysing loss data, they need to add value by working towards the firm's business objectives. This can be achieved using stress testing and scenario analysis, which add a human element…
Which way now?
Scenario Analysis
Evolve or die
Management