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.
Harnessing our differences
In the first of a series, Eric Holmquist considers the characteristics, challenges and opportunities in developing a risk culture
Global warming: a new risk for firms
MANAGEMENT
Two heads are better than one
Glenn Christensen of Synovus Financial Corp. introduces an enterprise risk management strategy known as the Bifurcated ERM Methodology
Resolving the confusion
Risk control self-assessments have become a Tower of Babel for the op risk discipline, with a variety of different approaches being taken. Ellen Davis reports
Bumf and bumf-ability
Each time a directive is altered in the run-up to implementation, the resulting rewording and reprinting of documentation can prove almost as challenging as getting the changes accepted by the industry. When that directive is as large as Mifid, a whole…
Gait marches towards greater security
MANAGEMENT
GAO report: common sense with a twist
The new report from the US's Government Accountability Office has much common sense in it.
Six can fix it
Op risk executives get visibly animated when discussing the subject of Six Sigma, but not many are taking advantage of it. Ellen Davis asks why
Event horizon
Rick Cech takes a second look at what makes up operational risk event types, and asks if there is a more advanced way to define them
OP RISK IN ASIA: Time for change
Implementation of the core principles of op risk still has a long way to go in the Asia-Pacific region. Ellen Davis reports
All in the mind
The number of op risk patent applications filed in the US has soared. Duncan Wood investigates the efforts being made to protect intellectual property
Time for change
Implementation of the core principles of op risk still has a long way to go in the Asia-Pacific region. Ellen Davis reports
A better execution
In the first of a series of six articles on Mifid, Victoria Pennington seeks clarification on a number of issues swirling around the best execution debate
Event horizon
Rick Cech takes a second look at what makes up operational risk event types, and asks if there is a more advanced way to define them
Russia opens up
Russia is moving ahead with Basel II implementation, with a new industry working group and new regulatory rules. Ellen Davis reports
A kick up the backside
Just what are the world's regulators doing to help move forward the discussion around operational risk?
Debating RCSAs
Four of the industry's top op risk executives debated risk control self-assessments at a recent briefing in London, moderated by Ellen Davis and sponsored by software vendor Reveleus
Looking into the crystal ball
Eric Holmquist presents some observations on the trends in ORM, and offers predictions on what to expect in 2007 and beyond
The advancing tide of rationalisation
Rationalisation, rationalisation, rationalisation. There is no denying it, this is the major theme in operational risk in the US at the moment, and it is a trend that is spreading to Europe as well.
