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.
Video: BBA says banks at risk of losing investors under ICB proposals
The capital requirements in the ICB report could make investment in financial institutions unattractive
Banks fear Fatca raises operational and systemic risks
Facing up to Fatca
Axa Rosenberg clients 'betrayed' by co-founder
Clients of Axa-Rosenberg lost $217 million because its co-founder concealed an error in one of its models, regulator says
Video: BBA gives first, exclusive views on the ICB report
In an exclusive interview, the BBA discusses whether the ICB should have looked more closely at other separation models for its final report on financial stability in the UK
Credit risk boundary events to be a focus for regulators
The Basel Committee's Sigor group will spend time on credit risk-related operational risk loss events at its upcoming October meeting in Frankfurt
A copula-based simulation model for supply portfolio risk
Research Papers
The role of systemic people risk in the global financial crisis
Research Papers
A framework for the analysis of reputational risk
Research Papers
Cost of control: balancing risk and expense
Cost of control
AMA and loss data collection on the rise at US banks
More US banks expected to employ AMA, while new stress-testing proposals increase interest in operational risk quantification among smaller banks
Market volatility may have brought UBS losses to light
The revelation of rogue trading at UBS follows a period of market volatility. That is nothing new, say risk managers
UK's ICB report a further complication for banks
The ICB's final report gives banks another layer of capital requirements to deal with
Foster pleads guilty to $22m fraud
Former vice-president of Citigroup's treasury finance department admits embezzlement
ICB's ring-fencing may spell the end for free banking
Industry experts fear ring-fencing of banks' retail operations as proposed in the ICB's interim report may spell the end for free banking in the UK
Insurers lack confidence in Solvency II data
Only 21% are highly confident about model data quality
LV= appoints Haynes as chief risk officer
Steve Haynes takes up chief risk officer post at LV=
Inclusion of legal losses in op risk databases has banks fretting
Banks worry Basel rules requiring legal events to be included in operational risk databases earlier might mean the information is used against them in legal proceedings
Banks face high costs for Fatca compliance
Banks might need to set aside up to 40% of their operations change budget to make themselves Fatca compliant
BBVA given deadline to improve AMA model
BBVA has been given until December 2011 to make improvements to its AMA model by the Bank of Spain, or will not obtain the capital savings the AMA allows
EBA to publish governance and op risk guidelines in September and October
EBA op risk specialist Bernd Rummel says the new European body has a busy schedule of work to implement CRD IV
ABI redundancies in the face of Solvency II
Shake-up will also entail "resourcing-up" Oric to help members prepare for internal op risk modelling
IIF calls for co-ordination in banking and insurance regulation
In its latest report, the IIF calls for cross-sector co-ordination in banking and insurance regulation