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 needs greater R&D effort, say US regulators
Senior Fed regulators call on banks to restart research into op risk management
OpRisk Europe: Reporting key to competent risk management
Reporting is key to competent risk management, yet is often neglected, New York Fed op risk specialist warns
OpRisk Europe: Fairness fights fraud, conference told
Firms can mitigate the risk of employee fraud by paying attention to their infrastructure and culture and also to the employees themselves, according to psychologist Adrian Furnham
Industry resists Dodd-Frank real-time reporting
While the Dodd-Frank Act calls for real-time trade reporting, industry insiders argue it will be misleading
OpRisk Europe: Incorporating legal risk "not a done deal" at Deutsche
Rob Nagra of Deutsche Bank tells of the tough journey Deutsche have had to get legal risk recognised as operational risk, while another international bank has found it easy
OpRisk Europe: clear risk lines vital, Wymeersch says
Eddy Wymeersch calls for independent risk function at top level
OpRisk Europe: EBA calls for common approach on CRD
Bernd Rummel describes EBA push for Europe-wide approach to capital rules
Oric and ORX in talks regarding possible merger
Oric and ORX have been in talks for more than a year regarding a possible merger of their operational risk data platforms
Only 15% of financial institutions have management information resources in place
Firms do not have MI risk programmes in place to deal with upcoming regulations, according to a report by think-tank JWG
Ease of bank switching could cause systemic risk
Meeting consumers' demands for easier bank account switching could increase the risk of a bank run, insiders fear
Sponsored feature: MEGA
How to use operational governance to create sustainable business value
Types of operational risk loss by event, April 2009 to April 2011
SAS presents the highest op risk losses in April and ABA Operational Loss Data Sharing Consortium analyses Q4 losses in the US
UK consumer protection: the fuss over the FSCS
The UK’s Financial Services Compensation Scheme (FSCS) was set up to ensure consumers could be compensated if their bank went under. But who should be paying for it? And what does its future hold as the country’s financial regulation framework is…
Firms face heightened op risk while implementing US CCP rules
Through a glass darkly
Mortage company chair convicted on 14 counts of fraud
Sigtarp says: "This is the most significant criminal prosecution to date rising out of the financial crisis"
Sentences handed down in Omni fraud case
Delroy Davy convicted of bank fraud, sentenced to 14 years in prison
SEC charges three execs in California with boiler room fraud
mUrgent Corporation and three of its executives charged with $10 million fraud
UBS ordered to pay $160 million in fines by SEC
Swiss bank charged with undermining the competitive bid process of municipal securities
British banks ring-fence more than £5 billion for PPI compensation payouts
Banks will not appeal decision of judicial review regarding complaints against them and have set money aside for settlements
SEC appoints director for national broker-dealer examination programme
Will oversee a staff of about 300 responsible for the inspections of US-based broker-dealers