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.
Dangerous adaptation: the evolution of risk
Dangerous adaptation: the evolution of risk
RBC Capital to pay $30.4 million to settle charges
RBC Capital is charged with misconduct in the sale of CDOs by the SEC
Auditors to be changed every nine years, EC proposes
Leaked draft EC regulation demands sweeping changes in auditor regulation
Sponsored feature: MEGA
Going further with Solvency II – The Unipol Group story
Greater focus on OTC derivatives op risk required in Asia – Celent
Market participants in Asia need to focus more on operational risks associated with their resurgent OTC derivatives trading volumes, especially as the market moves towards trade repositories and central counterparty clearing, according to a new report…
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