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.
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
Poulos joins Citi as global head of business continuity
Says crisis management is 'vital' part of new role
AIB refunds €8 million to ATM customers
Billing errors have caused Allied Irish Bank to rethink its ATM anti-fraud strategy
Sheer volume of new regulations is 'risk in itself'
Banks struggling to cope with implementing the wave of new legislation might miss indications of another crisis
BCBS issues final version of report on financial sector pay
Basel Committee on Banking Supervision reveals risk-adjusted remuneration report; urges large firms to move away from remunerating employees based purely on profits
IIF report states need for bank 'bail-ins'
Institute of International Finance says the mechanisms it is proposing will protect the taxpayer from losses
Suncorp’s risk controls and ops face up to Queensland floods
Withstanding disaster
IRM tackles thorny issue of risk appetite in new consultation paper
IRM issues guidance for boards of directors of listed companies on how to set risk appetite and tolerance
Using external data to calibrate Solvency II internal models
External solutions
Understanding the hidden risk of Solvency II
The hidden risk
Deutsche restructures Taunus to avoid unnecessary capital movement
Despite reports the German Bank is seeking to sidestep new US capital rules, the restructure of Taunus will help Deustche Bank put capital to better use
Firms’ misdemeanours keep FSA in the money
The total number of fines issued by the FSA since its records began has now reached £239.8 million
Types of operational risk loss by event, March 2009 to March 2011
Losses in the ‘Clients, products and business practices’ category continue
Where sharia meets the AMA
Risk and riba