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.
The online frontier
2007 has been a year of online activism and banks have paid the price. Is there an emerging reputational risk threat posed by bloggers and discussion forums? Peter Madigan investigates
Mario Mosse
Volunteer work
Does Basel II add up?
Are there inconsistencies in the standardised and advanced measurement approaches of the Basel II regulatory framework? Andreas Jobst considers the evidence
Incentives needed to push SEPA implementation
NEWS IN BRIEF
What's happening at JP Morgan Chase?
Recently, many have come forward to ask me what is going on within JP Morgan Chase's risk management division. Over the past year, a number of people have left the operational risk team, both at the corporate and business unit levels. Risk executives in…
A calculated approach
Operational risk economic capital calculation is high on the agenda - at last. So who is using it, and why? A new OR&C Intelligence survey investigates
Time to shine
In the wake of the subprime crisis and resulting global credit crunch, operational risk practitioners must seize the opportunity to prove the value of their discipline, says Ellen Davis
Subprime: Algo First database extols enterprise risk management
Daily news headlines
Apra wants firms’ op risk loss data
Daily news headlines
GCC banks behind on Basel II requirements
Daily news headlines
Doing the groundwork
The start of Reg NMS's pilot phase in July may have led compliance teams at brokerages to believe most of their work is done. But, as Peter Madigan explains, things are just getting started
The only way is up
Until now, op risk and compliance professionals have not been as well remunerated as their counterparts in other risk disciplines. However, with increased demand for those with the right skills, this looks set to change. Peter Madigan reports
A tough balancing act
The Office of the Comptroller of the Currency, under the watchful eye of deputy comptroller Kevin Bailey, is moving ahead with its Basel II policy. Victoria Pennington reports
Measures for measures
Consistent quantitative operational risk measurement is vital to the health of banks and financial institutions. Andreas Jobst offers guidance on enhanced market practice and risk measurement standards
A narrowing gulf
Many Middle Eastern nations are keen to implement Basel II, and larger banks have been stepping up efforts to develop an op risk framework. But smaller banks are being hindered by a shortage of resources and experienced staff, as Victoria Pennington…
'Big five' retain the consultancy crown
The usual suspects appear at the top of OR&C 's survey of consulting firms, but not without having their heels nipped at by the increasingly advancing competition
Subprime crisis shows why firms need ORM
It's hard to not be a bit worried by the subprime crisis and the spin-off events that have cascaded through the financial markets over the past few weeks. And it is ironic that the crisis kicked off in the US, where regulators have made such an unholy…
The urge to converge
Convergence is a clear goal for many in the industry, but uniform implementation is proving tricky, finds the latest survey from OpRisk & Compliance and Ernst & Young
Algorithmics highlights the most influential op risk events of the past 15 years
Daily news headlines
Australia revises Basel II standardised approaches
Daily news headlines
Keeping the wheels turning
When confronted with business continuity issues, energy giant E.ON used to turn to a printed manual. Now it has introduced a constantly evolving system to deal with BCP challenges. Duncan Wood investigates
The forensic approach
PROFILE: SEBASTIAN FRITZ-MORGENTHAL
Brazil looks to controls
New legislation in Brazil on banking systems and controls has triggered a flood of sales from large accountancy firms and specialist service providers. John Rumsey looks at the new rules and how Brazilian banks are responding