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Reflections on OpRisk Management
Discipline: Operational Risk
First published:
ISBN: 9781782723493
The operational risk discipline is still in its infancy in the financial services industry and that is what makes it fascinating. New methods arise every day and practice is constantly evolving; this bite-size book arms the reader with a variety of topics, analogies, suggestions and ideas to stimulate awareness and understanding of operational risk in the financial industry and beyond.
This book by Ariane Chapelle is a collection of 28 columns and articles, spanning more than five years. From the fundamentals of operational risk frameworks to risk capital, they are regrouped around six themes including risk appetite, key risk indicators, risk reporting and risk culture. Each chapter addresses a hot topic of the time, such as rogue trading, or topics that are still very much discussed today, such as key risks indicators and conduct risk. More recent issues like the SMA reform and the role of regulatory capital are also explored.
Contents
Introduction
Operational Risk in Four Letters
An Invisible Framework
Small is Beautiful in OpRisk Management
The Business Value of ORM
How to Minimise ‘People Risk’
The Missing Piece
Risk Appetite and Framework
From Russian Roulette to Overcautious Decision-making
The Importance of Preventive KRIs
How to Build Preventive Key Risk Indicators
Unlocking KRIs
Six Steps for Preventive KRIs
Have Your Cake and Eat It
Conduct, Not ‘Conduct Risk’
How to Manage Incentives
Is Reputation Risk Overstated?
What Regulators Want
Conduct & Culture
OpRisk Takes Forward Steps at OpRisk Europe 2014
Modern Scenario Analysis
The Rogue’s Path
Rogue Trading No Training: The Connections
What Brexit Teaches OpRisk
OpRisk Survey Shows the Insidious Effects of Political Risk
Discarding the AMA Could Become a Source of OpRisk
UCL Research Shows that SMA Reforms Introduces Capital Instability and Discourages Risk Management
Memo to Bank CEOs: Treat OpRisk with More Respect
Don’t Let the SMA Kill OpRisk Modelling