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.
Op risk models still needed despite SMA, says regulator
Models “play an important role in quantifying risk”, says OCC's Beth Dugan
Firms seek to improve use of key risk indicators
KRIs are useful tools, say risk managers, but can also be a source of frustration
Top five losses: Julius Baer fined by DoJ, HSBC settles in US
Latest data on op risk losses from SAS (to February 29, 2016)
Basel op risk plans 'not fit for purpose', say banks
SMA expected to raise capital charges, but lower standards in risk management
CCPs face pressure to deal with cyber security threats
Regulators and clearing members urge central counterparties to do more to guard against attacks
Operational Risk Awards 2016 open for entries
Practitioners, vendors and service providers invited to enter to win an Operational Risk Award
Banks grapple with ‘unprecedented’ vendor risk rules
Firms cutting numbers of vendors and hiring more staff to oversee third-party relationships
Banks take various approaches to tackling conduct risk
Definitions, reporting lines, frameworks and metrics vary among major banks, Risk.net research shows
Firms fail to unlock benefits of key risk indicators
Risk culture and data problems have besieged KRI programmes, say authors of new book
Banks collaborate on non-financial risk taxonomy
Operational risk practitioners from large banks working together on industry best practice
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