Operational risk news and analysis articles - Risk.net

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Economic capital versus regulatory capital – a market benchmark

Guido Giese sets out to provide a market benchmark for the relationship between economic andregulatory capital models currently used or developed across different financial institutions, andto analyse the market forces driving the development of economic…

30 May 2003

Risk management

Getting the solvency balance right

The next few years will witness a radical overhaul of EU solvency insurance regulations underthe banner of the Solvency II project. The proposals will align regulatory capital requirementswith true economic risks, with clear advantages to those players…

27 May 2003

Technology

The headaches of op risk integration

The banking industry, spurred by Basel II, is acquiring systems to cope with the host of disparate issues that fall under the rubric of 'operational risk'. But how do you stitch these piecemeal solutions together?

22 May 2003

Risk management

Bank risk disclosure improving, says Basel Committee

A new report from the Basel Committee on Banking Supervision says that, overall, banks are improving their disclosure of credit, market, operational and other risks in their annual reports.

21 May 2003

Technology

Crackdown on risk budgets: Trader sign-off on revaluing data must end, says industry body

NEW YORK - The Professional Risk Managers' International Association (Prmia) is considering issuing guidelines recommending banks separate their risk management budgets from FX and other business lines.

19 May 2003

Credit risk

Roundtable > Operational risk quantification: a discipline at a crossroads

Operational Risk magazine held its first European roundtable during Risk magazine's annual European congress, in Paris, on April 9.

15 May 2003

Technology

Sponsor's article > Is 8% for all seasons?

Considering the potential pro-cyclical impact of Basel II and the limited effectiveness of countervailing influences, David Rowe concludes that making the 8% ratio of capital-to-risk-adjusted-assets a discretionary policy variable should be part of the…

14 May 2003

Risk management

How practical is op risk insurance?

PARIS AND NEW YORK - The decision to allow the use of insurance to offset operational risk charges, under international and European risk-based regulatory frameworks, has opened yet another proverbial can of worms for banks.

13 May 2003

Technology

The consulting conundrum

Gone are the Y2K days, when consultancies could exploit their strong positions and bill their clients big money for questionable services. The roles have been reversed for financial services firms, and consultancies are having to back up their ‘smoke and…

13 May 2003

Basel Committee

Framework developed for German banks

BONN, GERMANY - Many of Germany's banks have been somewhat slow to prepare their operational risk management framework for the new international bank capital accord, Basel II, and the prospective European Union (EU) Capital Adequacy Directive (Cad).

12 May 2003

Basel Committee

CP3 Alert

CP3 Alert covers the most significant changes incorporated into CP3 by the Basel Committee, including alterations to the sections on securitization, operational risk, residential mortgages, credit derivatives, and the supervisory and public disclosure…

08 May 2003

Structured products

Congress demands ratings report from SEC after no-show at hearings

WASHINGTON, DC - The chairman of a House of Representatives subcommittee that held early April hearings titled "Rating the rating agencies: the state of transparency and competition," sent a strongly-worded letter to the chairman of the Securities and…