Operational risk
Turning ‘risky’ confidence into risk confidence
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Basel II - Rules and Models
The proposed operational risk charge remains one of the most contentious areas of the new Basel Accord. Carol Alexander reviews the current proposals in the context of various simple models, and argues that practical implementation will require the use…
Linear, yet attractive, Contour
Banks’ Potential Future Exposure models are at the core of the advanced EAD (Exposure At Default) approach to capital requirements for credit risk considered in the New Basel Capital Accord. Juan Cárdenas, Emmanuel Fruchard and Jean-François Picron look…
In search of clarity and focus
Greater precision is needed in defining operational risk, but the Basle regulators' latest thoughts are lost in generalities, says Jacques Pézier, in the final article of a three-part series.
Basel shortcomings: Danger lurks on the rocky road to Basel II
The Basel Accord proposals to define operational risk contain many fatal flaws, says Jacques Pézier. He argues that it would be better to focus management time on managing key risks than on developing op risk databases and measurement procedures.
Regulators want active dialogue on op risk
BASEL - Active dialogue between banks and their supervisors is the key to the continued development of approaches to managing operational risk, global banking regulators said in a much-delayed paper on op risk sound practices issued in December.
The Basel II capital accord: op risk proposals in brief
This summary has been updated to include the revisions to the Basel II op risk proposals contained in the Working Paper on the Regulatory Treatment of Operational Risk issued in September, 2001 and available on the Bank for International Settlements'…
Sound practices paper gets positive response
Bankers generally responded positively to the guidance on sound practices for managing operational risk issued by global banking regulators in December.
European timetable threatened by CP3 delay
The European Union's timetable for bringing new risk-based bank capital adequacy rules into effect is in jeopardy following the decision of global banking regulators to delay publication of a key consultative paper.
Op risk modelling evolves
Operational risk is devilishly difficult to model, but dealers and software vendors are making headway. Automated op risk reporting, profiling and sophisticated operational value-at-risk (VAR) modelling are finally beginning to catch-on in banks.
Basel II sets the pace for operational risk reform
Basel II is set to come into play in 2005, bringing a host of opportunities for vendors along with the new framework for banking supervision. Andrew Partridge examines the potential and some of the challenges for the suppliers and users of financial…
The Basel Accord: A tough nut to crack
Crafting a capital charge for operational risk has proven to be a project fraught with controversy. International regulators’ first attempt raised the industry’s hackles. David Keefe reports on recent – and further expected – compromises by the Basel…
Moody's says September 11 puts focus on event risk
WORLD TRADE CENTER AFTERMATH
Fighting fat-finger syndrome
TECHNOLOGY
Regulators want active dialogue on op risk
BASLE II UPDATE
Swift moves a step closer to STP
TECHNOLOGY NEWS
The Basle II capital accord: op risk proposals in brief
BASLE II UPDATE
Algorithmics demos Algo OpCapital module
TECHNOLOGY NEWS
In search of clarity and focus
BASLE II UPDATE
Review of the year
A look back at the significant risk events of 2001.
Will Germany scupper Basel II?
How real is Germany’s threat to veto the proposed Basel II bank capital accord if the country fails to get the concessions it wants on the accord’s treatment of bank lending to small to medium-sized companies (SMEs)?