Operational risk
WHAT IS THIS? Operational risks are those arising from people, processes and systems – the biggest form of exposure for many industries, but one that was neglected by financial firms until the collapse of Barings Bank in 1995. It was added to the Basel capital framework in 2004, but attempts to model operational risk were dealt a heavy blow by the huge, unforeseen losses suffered by banks in the aftermath of the financial crisis.
Cyber is just a ‘subset of operational risk’, CISO says
Information security should use same framework as op risk, Cyber Risk Europe delegates hear
Operational risk managers told to do less to succeed
Resist temptation to intervene often, says head of op risk at UBS Asset Management
UK financial firms lack ‘basic cyber hygiene’, says FCA
Financial regulator says it will challenge firms more regularly on cyber security
Research on loss data backs up new Basel op risk charge
Study finds op risk losses can be scaled in the same way as tests on engineering models
Euro banks to bear brunt of €115bn SMA capital hike: study
"You will get some winners and some losers, but with this it's mostly losers," says ORX's Carrivick
Regulation: A top 10 op risk concern in 2016
Sponsored Q&A: Abide Financial
Metro Bank aspires to IRB for credit risk
CRO Aileen Gillan discusses UK bank’s approach to culture, conduct and credit risk under Basel II
Careless whispers have a cost
CFTC redefines insider trading for the swaps market
Investors must probe bank culture, says veteran financier
Ex-Barclays chairman says managers should take “stewardship responsibility” for bank conduct
Bangladesh Bank theft shines light on cyber risk
Banks and regulators increasingly concerned amid high-profile cyber security breaches
SMA proposal fires up op risk managers
Banks say backward-looking SMA is easily gamed and will lead to high and volatile capital charges
Bringing order to op risk and the duck-billed platypus
Industry co-operation on operational risk taxonomies might yield a valuable tool
Nine years later, RMBS woes still haunt banks
Megan van Ooyen from SAS rounds up the top five operational risk losses for April 2016
Operational risk: impact assessment of the revised standardized approach on Indian banks
This paper focuses on a comparison of the capital for Indian banks as required by the current regime for capital charge calculation, versus the possible revised Standardised Approach.
In operational risk, the future ain’t what it used to be
Just because we can't measure op risk accurately doesn't mean we should give up, argues Peter Sime
Correlation of op risk losses could send capital soaring
BB&T auditor's model shows capital measured by LDA might be pushed up by 16–55%
Banks seek to make op risk taxonomies less taxing
Difficulty of devising and implementing taxonomies leads major banks to start sharing ideas
Operational excellence is what the public deserves
Public sector institutions must learn from best practice in the private sector
Small is beautiful in operational risk management
Small firms have many advantages in administering op risk programmes, argues Ariane Chapelle
Options for tackling model risk limited, conference hears
Greater use of models means risk "has significantly increased", says HSBC's Bhaskar
Bangladesh Bank fraud is a comedy of op risk errors
Megan van Ooyen from SAS rounds up the top five operational risk losses for March 2016
Technological nightmares worry Zurich Global Corporate CRO
Cyber crime and nanoparticles represent emerging risks for insurers, says John Scott
European banks face steep op risk capital hike from SMA
Op risk accounts for 28% of US banks’ RWAs, compared with 12% at European banks
BSB aims to develop culture and conduct benchmarks
Standards body “rolling out much broader and deeper assessments in 2016”, says Citi’s Bardrick