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 managers need to turn on the charm
Op risk practitioners are being asked to display more people skills, which will help them to embed an operational risk culture across their firms. But even the most charismatic of managers stand little chance of being promoted above their credit and…
Clear and present danger
Transparency is a concept that has been bandied about by banks a lot lately, usually when they know the press is watching. But just how transparent are banking practices, and just how clear is the Basel approach to operational risk?
Smartphone banking has limited mobility
Mobile banking using smartphones is the next frontier for retail banking, but banks have been slow to venture into this new territory
Sheen: The FSA's go-to guy for op risk
Andrew Sheen at the UK Financial Services Authority has rapidly become one of the most respected experts in operational risk, perhaps due to his clear vision of where the profession needs to go and what it must do to get there.
Basel II and Basel III: Top articles from Risk.net
The ink was hardly dry on Basel II when the international financial crisis saw that agreement being ripped up and recreated as Basel III.
IOR opens Asian chapter
The Institute of Operational Risk hopes its new Hong Kong chapter will enhance the profile of operational risk management in Asia
Staff retention poses problems in operations depts, says Marex head
Internal departures can create a 'revolving door'
French banks under pressure to hold more op risk capital
Rogue traders and a worsening financial crisis are leading French regulators to put pressure on banks to hold more capital for op risk
Turning points: Nick Cioll, CRO, CFO of TriEagle Energy
Nick Cioll, CRO and CFO of TriEagle Energy, speaks with Pauline McCallion about the turning points in his career that led him to blending his skills in finance and energy risk management
Circuit breakers to stem NYSE trading falls
A 10% move in a stock price would trigger a pause in trading to prevent sudden falls
Moody’s widens op risk definition for securitisation
Ratings agency breaks down boundaries of counterparty, credit and liquidity risk
Firms scrimp on insurance despite rise in claims
Survey finds European firms aligning insurance packages with their risk profiles
New kids on the block
As the traditional retail banking giants struggle to stay afloat, a new breed is rising to the surface
Learning to Love Basel II
Introducing a major insurance element to operational risk management processes is a passion for National Australia Bank’s Ross Love.
Understanding the Operational Risk Consortium’s scenario approach
The UK’s Operational Risk Consortium (Oric) recently published a report on the use of scenario analysis of operational risk in insurers. Mariano Selvaggi describes the issues Oric took into account when making its analysis and why establishing a…
Penny Cagan in conversation with Jonathan Howitt
Algorithmics' operational risk expert Penny Cagan speaks with the Man Group's Jonathan Howitt on key challenges facing op risk executives globally
