Basel II
Terrorism insurance - Modelling the unthinkable
In November, the US government passed a law requiring all insurers to underwrite terrorism risk, forcing them to find a way to price this exposure. Could terrorism risk models be the answer?
Tailoring internal models
Swiss Re's Pablo Koch Medina, Frank Krieter and Stephan Schreckenberg highlight the key features and main limitations of internal risk models for insurers.
Meeting Basel II head on
Regulators are urging banks to update their rating methodologies in preparation for Basel II. Fitch Risk's Treeve Coomber thinks his new product will help to meet this challenge.
Analysing business processes
A good understanding of how a business works is the fundamental prerequisite for operational risk analysis. Johan Palm describes the rationale for, and implementation of, the Swedish National Debt Office's bottom-up business process analysis.
ECB highlights dangers of over-concentrated market
FRANKFURT — Market consolidation and a reliance on electronic trading could lead to an over-concentration of risk and liquidity among too few market participants, the European Central Bank has warned.
EU supervisory committee to be established
The European Commission is establishing a supervisory committee designed to promote convergence among EU nations in the adoption of the Basel Accord revisions and the related EU Capital Adequacy Directive (CAD), according to Jean-Claude Thebault, head of…
Op risk economic capital is 15%, says BIS study
Banks allocate an average of 15% of their economic capital for operational risk, according to a study released today by the Bank for International Settlements (BIS).
QIS3 results delayed until May
The release of the third quantitative impact study results will be delayed until May, when they will be published alongside the Basel Committee on Banking Supervision's third Consultation Paper (CP3), according to Patricia Jackson, special adviser on…
NY Fed’s Rutledge outlines US plans, IRB goals
William Rutledge, executive vice-president of the New York Federal Reserve Bank, outlined the next steps US regulators will take to implement the Basel Accords in the US.
In need of reassurance
The knock-on effects of the crisis in equities has hit the insurance sector particularly hard – so much so that UK regulatory body the FSA has been forced to step in and allow certain insurers to breach mimimum solvency ratios.
Rating agencies open can of worms
NEW YORK — Rating agencies are coming under much closer scrutiny as providers of operational risk analysis, as a result of the Basel Accord revisions and recent US corporate scandals.
European demand for op risk talent set to surge in 2003
LONDON — Executive recruiters are seeing a strong rise in interest in hiring operational risk talent for commercial and investment banks, and dozens of fresh mandates.
QIS 3 results to be delayed to May
The release of the third Quantitative Impact Study (QIS3) results will be delayed until May.
Advancing op risk management using Japanese banking experience
Junji Hiwatashi and Hiroshi Ashida of the Bank of Japan outline a practical framework for operational risk management, derived from research and experiences in Japan's financial community.
Mark-it Partners puts it all on Red
Deutsche Bank, Goldman Sachs and JPMorgan are negotiating the sale of their credit derivatives reference entity database, Red, to UK credit risk data company Mark-it Partners.
Caruana to replace McDonough as Basel Committee chief
Jaime Caruana, governor of the Bank of Spain, will replace William McDonough, president of the Federal Reserve Bank of New York, as chairman of the Basel Committee on Banking Supervision.
Securities trading could be money laundering tool
PARIS — Securities trading is a potential mechanism for money laundering, the Financial Action Task Force (FATF) said in February.
Isda muddies debt waters
The International Swaps and Derivatives Association (Isda) has finally released its 2003 credit derivatives definitions, which take effect on March 17.
Linkage between op risk measurement and management key, says Lawrence
The key question that operational risk managers must face is how they directly link op risk measurement to the process of op risk management, said Mark Lawrence, chief risk officer at ANZ Bank in Australia, today at the annual Operational Risk conference…
ABN Amro expands structuring and advisory capabilities in Asia
Dutch bank ABN Amro has significantly bolstered its financial institutions and public sector group in Asia with the addition of 10 new hires, as it looks to extend its structuring and advisory capabilities across the region.
Caruana to replace McDonough as Basel Committee chief
Jaime Caruana, governor of the Bank of Spain, will replace William McDonough, president of the Federal Reserve Bank of New York, as chairman of the Basel Committee on Banking Supervision.
Op risk charge flawed, says State Street
WASHINGTON, DC - "It is difficult to see how a regulatory operational risk-based capital rule would have promoted the financial system’s rapid recovery on 9/11," said David Spina, chairman and chief executive officer of State Street Corporation, the…
Profile: SEB strives for total operational risk acceptance
STOCKHOLM, Sweden — Within the discipline of operational risk, it's often fancy mathematical models and souped-up databases that executives choose to focus on. But Lars Hansén, manager of Swedish financial company SEB's group op risk team, says it's the…
What's coming, and when
This article covers significant dates over the next couple of months from an international, European, UK and US regulatory perspective.