Operational risk

Unleashing Asia's demons

The Basel Committee’s new consultative paper on capital adequacy could wreak havoc with Asia’s domestic banks. The revamped rules will make the shortcomings of their risk management systems all too clear.

Basel’s flawed paradigm

David Rowe suggests some important tweaks to the new Basel Capital Accord, if it is not to be viewed as reflecting an obsolete definition of capital adequacy.

Boom or bust for risk consultants

Basel capital reform should mean a lot more business for risk management consultants. But a shortage of the right specialists could prevent them from cashing in.

Basel's new credit model

The Basel Committee’s new consultative paper allows banks to internally rate individual credits. But at the portfolio level, Basel wants to apply a single model framework, based in part on a technical paper published in Risk magazine in October 1998.

Documentation dilemmas

Concerns over credit event definitions and the Basel Committee’s ‘ w ’ capital charge on credit mitigation instruments will not be easily resolved.

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