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.
OpRisk Europe: Harmonised rules must preserve flexibility, panellists say
Speakers at OpRisk Europe conference call for balance between harmonisation and national freedom
Banks must prepare for more Fatca-style legislation, experts warn
The likelihood of Fatca-style legislation from other jurisdictions means banks must be prepared
Sponsored feature: Marsh Risk Consulting
Sound steps towards risk management
Types of operational risk loss by event, April 2010 to April 2012
The top five op risk loss events in April
Regulation, quantification and cyber risk at Zurich
Why we quantify
Burns joins US SEC trading and markets
SEC appoints James Burns as deputy director in trading and markets division
IOR elects three new council members
Institute of Operational Risk appoints three new council members
SEC appoints deputy chief of staff
SEC appoints Erica Williams as deputy chief of staff
Banks spend 25% of compliance budget on overseas regulation
New research finds banks face steep extraterritorial compliance costs
Nixon joins IIF
IIF appoints deputy managing director
Recovery and resolution diverting attention from real risks, expert warns
RRPs are distracting risk professionals, one legal expert says
Nordic banks push for Fatca deal
Nordic banking associations open Fatca reciprocity talks
Mitigating the risk of organised crime on banks' call centres
A balanced defence
Slater to join Standard Chartered as group head of operational risk
Peter Slater leaving CLS to take up op risk role at Standard Chartered
Fatca reciprocity splits industry opinion
Reporting requirements such as those under Fatca reciprocity make waves and divide opinion in the industry
Volcker compliance-responsibility aspect splits legal opinion
Volcker rule requirements for chief executive compliance responsibility called into question
Beware of data leverage
Beware of data leverage
Questions raised over FSA twin peaks structure
FSA begins its ‘twin peaks’ approach, but some participants say questions remain over how the new structure will work
Special report: Operational risk
For energy traders and risk managers, operational risk extends far beyond IT and trading-systems risk to the real-world fundamentals of delivery risk, shipping delays, pipeline congestion or even a cyber attack on the power grid.
Dexia rejected AMA over uncertain capital relief
Public finance specialist rejected AMA prior to break-up, finding capital benefit might not offset costs, but fellow Belgian bank BNP Paribas Fortis argues in favour of op risk modelling