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.

Traitors in our midst

As staff turnover rises and the pressure to perform increases, firms face the very real risk of good (or not so good) employees going bad. David Benyon looks at what firms can do to deter wrongdoing and protect their less tangible assets

A combined effort

Rather than running the business process and operational risk management frameworks in tandem, why not combine them and use one structure to comply with many rules? By Dennis Dickstein

More for your money

A new OR&C Intelligence Survey shows that, as profits fall and levels of fraud increase, financial institutions are working hard to adopt an enterprise-wide approach to fraud management. Victoria Pennington assesses the results

Highly cultured

Patricia Jalleh, head of group operational risk at United Overseas Bank Group, says that to achieve a robust op risk framework, a risk culture must be well and truly embedded within the firm. And no risk culture is perfect - it's a matter of constantly…

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