Moody’s to give more weight to operational risk when rating banks

Moody's Investors Service will focus more on operational risks when rating banks, the rating agency said today.

“The evaluation of operational risk in banks is becoming a more important element of the analytical process, especially since recent institutional problems have demonstrated the need for more responsive approaches to risk management,” said Moody’s.

Moody’s London-based bank operational risk analyst Brendon Young said he could not comment explicitly on what the agency regarded as “recent institutional problems” for client confidentiality reasons. But he added that the problems broadly relate