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.
Top five losses: JP Morgan settles, internal fraud costs credit union
Latest data on op risk losses from SAS (to January 31, 2016)
All you need to know about op risk in four letters
Processes, people, systems and external events are fundamental to operational risk management, says Ariane Chapelle
CRO says NY Fed faces same op risks as commercial banks
“The predominant risks the bank faces have shifted since the end of the financial crisis,” says Rosenberg
'We are all at risk' from cyber, conference told
Worry of financial firms shown by increasing demand for cyber liability insurance
Operational risk technology product of the year (sell side): NICE Actimize
More than 400 customers are now using the ERCM platform to keep a lid on financial crime
Operational risk technology product of the year (buy side): CloudMargin
Clearing adds complexity for small buy-side firms; CloudMargin aims to take it away
UK banks take lead in tackling conduct risk
Bank actions show how emphasis on culture and conduct has risen globally since 2011
Legacy systems: mission impossible or mission unnecessary?
Old technology poses security and compliance risk
Cyber risks are silent, deadly and often mundane
Fear of submarine-like attack overshadows more dangerous, less scary cyber threats
Top 10 Operational Risks for 2016
Risk.net presents the Top 10 Operational Risks of 2016, as chosen by risk practitioners
Cyber is biggest operational risk fear, say practitioners
Regulator emphasis and high-profile attacks keep cyber threat top-of-mind
Nasdaq appoints Adena Friedman as chief operating officer, and other recent job news
Other news: Oric International; Investors Bank; Deutsche Bank; Aldermore; Ally Financial; Systemic Risk Council
Top five losses: JP Morgan fined for mis-advising, London Whale
Latest data on op risk losses from SAS (to December 31, 2015)
Banks left little time to amend ‘bad apples’ rules before SMR
Personal accountability rules will also see rise in internal attestations and impact on recruitment
Risk technology rankings 2015: Surgery, instead of plasters
Murex, Calypso, FIS take top spots as clients push for regulatory compliance
The client onboarding challenge: Getting to grips with 2016’s AML and KYC compliance risks
Sponsored webinar: Thomson Reuters
Diversification benefit of operational risk
Torresetti and Le Pera explore the relevance of the diversification benefit from a theoretical and practical viewpoint
Talent drought threatens risk management, say firms
“Most acute shortages” are in operational risk, say recruitment consultants
Banks say take-up of KYC utilities needs to improve
"Critical mass" needed before risk management benefits can be realised, firms say
Basel op risk reform proposal expected to be delayed
Consultation on scrapping operational risk modelling is now expected in early 2016
Leipoldt outlines problems of GRC implementation
Saudi Hollandi Bank's operational risk leader discusses implementation of governance, compliance and risk project
Risk management: different industries, different drivers
Energy firms get wise on credit risk; asset managers tackle op risk
Integrating KRI frameworks into risk assessments
Sponsored webinar: MetricStream
Operational risk: what do the regulators expect?
Ariane Chapelle offers some advice on how to avoid unnecessary scrutiny from supervisors