Operational risk modelling
OpRisk Europe: The slow drive for change
Speakers at OpRisk Europe agreed that, while change in op risk legislation and capital calculation is necessary, it needs to be undertaken slowly and carefully
Basel’s buffers won’t apply to op risk calculation
Basel Committee proposes capital buffer to be tied to macroeconomic indicators
Sigor assesses QIS data but capital rule changes will wait
Basel Committee considers recalibrating the simpler approaches to op risk measurement but says changes will happen later rather than sooner
Consortiums look beyond historical loss data
The financial crisis has shown historical loss data is not enough to help model and predict future op risk events, so some loss data consortiums are looking to include features such as scenario analysis results in their databases
How to make VAR go voom
An amended approach to value-at-risk that focuses on the drivers of risk and the use of agent-based modelling and simulation to capture the bounded rationality of human decision-making
Chinese banks’ AMA op risk projects on hold
AMA projects on hold as Chinese banks get to grips with credit risk portion of Basel II
Indian loss data consortium Cordex ready to float
The long-expected Indian op risk loss database is in the process of being floated as a private limited company
Clear and present danger
Transparency is a concept that has been bandied about by banks a lot lately, usually when they know the press is watching. But just how transparent are banking practices, and just how clear is the Basel approach to operational risk?
Morgan Stanley’s metrics in Cruz control
Marcelo Cruz Morgan Stanley's new global head of operational risk measurement and metrics
Cebs addresses next-generation AMA models
Paper seeks to harmonise rules for approving model changes under the advanced measurement approach (AMA)
Passage to India
It’s a long way from Basel to Mumbai, and it will be a while before India’s banks have fully implemented the Basel II capital requirements framework. OR&R looks at how far they have come, and the obstacles they must overcome on the path ahead
StanChart's Cherriman harnesses people power
Andrew Cherriman, head of operational risk management for wholesale banking at Standard Chartered Bank in Singapore, says his ability to rely on expert staff is the key to operating a sound risk management system across the bank’s many jurisdictions.
The hidden risk
Risk is inherent in the use of spreadsheets within financial institutions but it has long been ignored. Now regulatory scrutiny into processes is spurring growth in the market for spreadsheet control solutions. Nolan Gesher explains why they are worth…
An operational model
Scarce and shallow loss data has been the bane of operational risk models historically, but a new paper calls for more work on statistical approaches that could improve their sensitivity. By Peter Madigan
Highly cultured
Patricia Jalleh, head of group operational risk at United Overseas Bank Group, says that to achieve a robust op risk framework, a risk culture must be well and truly embedded within the firm. And no risk culture is perfect - it's a matter of constantly…
Fitch enhances analysis of banks' risk-based capital
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