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.
Bad culture makes bankers cheat, says new research
Poor professional culture drives bankers to be more dishonest
Top 10 op risks 2015: social media
Social media brings new risks to a bank, but also benefits
Failures recur because of lack of challenge, say managers
Operational risk managers highlight repeat failures at firms
RBS fined £56m for control failures over 2012 IT outage
Poor IT risk management threatened UK financial system
Data sharing platform unites banks against cyber crime
Community data sharing could change cyber risk protocol
Bank of England disaster protocol questioned
Weaknesses highlighted after payment system failure
Energy traders ignore legal risk at their peril
Legal risk can be disastrous but is hard to tackle, argues Kaminski
Basel's operational risk capital revisions welcomed
Basel Committee overhauls standardised approaches
Banks consider sealed trading rooms to reform benchmark procedures
Isolating traders to prevent manipulation
Culture clash: The reasons behind risk culture failure
The dangers of complacency, excessive risk and management failures
Identifying and managing emerging operational risks
Sponsored webinar: MetricStream
Singapore op risk charge many times greater than Solvency II
Increased capital charges for equity and credit spread risk are fine
China commodity finance costs spike after Qingdao fraud
Rising costs and delays in issuing letters of credit deterring SMEs
Risk Books: Risk Transparency
Sanjay Sharma talks about risk transparency and how his book helps achieve it.
Standard formula insurers face higher operational risk capital charge
Change to definition of unit-linked expenses would increase firms' SCR
CpML to foster standardisation among energy traders
Markup language could reduce high levels of operational risk
GRC software makes inroads in US utility sector
Grid reliability and cybersecurity rules generate interest
Banks ignoring business continuity management
Business continuity slipping down the agenda for financial institutions
Fed and FDIC living wills 'wholly misunderstood' by US banks
First-wave filers unclear on regulators' resolution expectations
FinCen AML advisory notice a warning shot to banks
Banks must heed advisory message promoting compliance culture
Conduct risk rush a worry, says State Street op risk head
Setting up conduct risk units in a hurry may hamper op risk management
Fatca compliance slowing down after 'ambiguous' IRS notice
Three months after IRS notice, Fatca compliance programmes slackening
Fatca compliance at risk via third parties, expert warns
Questions on compliance within third parties need to be more focused