Operational risk

An integrated framework for the governance of companies

Cases of insolvencies, losses and internal frauds have been increasing of late. As a result, the question is asked more and more often whether such cases could have been avoided with better governance of companies or a clearer organisational handbook. In…

NAB publishes report on options losses

The National Australia Bank (NAB) has published a report on the A$360 million ($262 million) options trading scandal, which blames weaknesses in risk management controls and inadequate management supervision for the losses.

PCAOB approves stricter internal audit controls

The Public Company Accounting Oversight Board (PCAOB) has approved an auditing standard for audits of internal control over financial reporting, and proposed amendments to the board's existing interim auditing standards to conform them to the new…

Constructing an operational event database

Michael Haubenstock of US bank Capital One outlines a framework for an event database, formulated with current US regulatory guidance on the subject in mind. The text is an abstract from The Basel Handbook, which has just been published by Risk Books.

The score for credit

Jorge Sobehart and Sean Keenan discuss the benefits and limitations of model performance measures for default and credit spread prediction, and highlight several common pitfalls in the model comparison found in the literature and vendor documentation. To…

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