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.
First SEC whistleblowing chief leaves regulator
Old Mutual appoints new CRO; StanChart hires new head of regulatory reform; Ulster Bank appoints Ireland CRO
FCA’s ‘zero tolerance’ on KYC fosters de-risking – BBA
Media and UK regulator’s approach to financial crime criticised at Commonwealth discussion
State Street sees double whammy of op risk losses
Megan van Ooyen from SAS rounds up the top five op risk losses for July
Operational risk modelled analytically II: classification invariance
In a simple model, Vivien Brunel establishes the properties of an operational risk model under the requirement of classification invariance
OCC’s Cunningham on why regulatory agencies need CROs too
The US banking supervisor has been taking a leaf out of banks’ books and putting the focus on enterprise risk management
Experts question CPMI-Iosco cyber guidance
Speedy settlement and resumption of services after cyber attack could be counterproductive
Technology holds the key to easing KYC, says FCA director
UK regulator promotes the use of financial technology to smooth compliance wrinkles
Regulatory miasma makes life difficult for Ocwen CRO
Op risk veteran Marcelo Cruz says firm faces “absurd” quantity of rules in US mortgage market
$1.5bn subprime hit at HSBC dwarfs other op risk losses
Megan van Ooyen from SAS rounds up the top five op risk losses for June
What Brexit teaches operational risk management
Receptiveness, resilience and reflection are crucial for avoiding nasty surprises
Creating business value: Measuring the return of improved data management
Sponsored survey analysis: Oracle Financial Services
Even for me, AMA models are too complicated
The AMA doesn’t make any sense – but the idea of a single, simple equation does, writes Ruben Cohen
Banks told to seize moment to devise new op risk charge
Banks should “get clever and develop their own model” in response to SMA, says UK bank risk manager
Best fraud detection product: Clari5
Financial crime-management system uses collective intelligence and responds to changes in a client's behaviour over time
Law firm of the year: Stephenson Harwood
Small is beautiful for the regulatory litigation practice, representing banks in high-profile cases
Asset manager of the year: AllianceBernstein
AllianceBernstein reduces costly operational blunders by bringing risk to the fore
Bank of the year: UBS
Risk management failures cause the bank to revamp its op risk programme
Best operational risk initiative: Oric’s Scenario universe and Principles of operational risk management and measurement
The consortium wins with a definitive set of op risk scenarios that insurers can use to identify which one is relevant
Best newcomer: Capital Preferences
Its Economic Fingerprint product uses basic games to tease out a client's 'revealed preferences' in terms of their attitude to risk
Regulator of the year: Australian Prudential Regulation Authority
Apra wins praise for pushing business case for op risk modelling and scenario analysis
Best GRC product and Best operational risk product: Nasdaq BWise
The vendor, a leader in the governance, risk and compliance space, scores with rapid deployment solutions
Best risk analytics tool, Best stress testing product and Best overall product: The Analytics Boutique
OpCapital Analytics has been implemented at 10 institutions, including banks and insurance companies
Consultancy of the year: PwC
PwC goes back to basics to simplify how clients approach risk management
Insurer of the year: MassMutual
US life insurer makes strides in op risk with corporate culture and IT