Loss data
Op risk faces unique challenges in the Middle East
Daily news headlines
Strength in numbers
Data consortiums for loss information are popping up all over the globe. Why are they proving so popular? Duncan Wood reports
The data puddle challenge
The loss event taxonomies currently in use are inadequate. The worst problem is the lack of clarity with regard to the boundary conditions between risk event categories. Tara McLenaghen explores the issues
Compliance controls minimise data loss, study finds
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The trouble with GRC
Governance, risk and compliance is posing thorny challenges for many executives
A question of discipline
Op risk is showing signs of maturing, although there is still much work to be done. So delivering value to the business continues to be a substantial challenge, according to a new survey
Harvesting loss data
Although often the core of Basel II models, loss event data is usually less robust than op risk executives would like. Peter Madigan explores the challenges around collection, clearing and enrichment
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
Sponsor's article > SunGard to rise again
SunGard, the 900-pound gorilla of the financial sector software market, has been strangely absent from the operational risk software arena so far, according to both financial and technology industry executives. Now, however, that looks set to possibly…
Bank of Italy official posts op risk paper
In mid-July, an official from the Bank of Italy posted a paper, The modelling of operational risk: experience with the analysis of the data collected by the Basel Committee, which is beginning to garner attention in international op risk circles.
Bank of Italy official posts op risk paper
In mid-July, an official from the Bank of Italy posted a paper, The modelling of operational risk: experience with the analysis of the data collected by the Basel Committee, which is beginning to garner attention in international op risk circles.
Boston Fed publishes new op risk paper
The Federal Reserve Bank of Boston published another ground-breaking paper on operational risk in mid-June.
Op risk assessment hampered by lack of reliable data
Inadequacy of loss expectation data is a major cause of modelling risk for operational risk strategies, said Carol Alexander, professor of the ISMA Centre at the University of Reading in the UK, at Risk's annual European conference.
Constructing an operational event database
Michael Haubenstock of US bank Capital One outlines a framework for an event database, formulated with current US regulatory guidance on the subject in mind. The text is an abstract from The Basel Handbook, which has just been published by Risk Books.
S&P questions Basel II
NEW YORK - Standard and Poor's anticipates significant challenges for banks to quantify operational risk as outlined in Basel II, even though it expresses general support for the Accord as a whole.
Basel paper outlines way forward for op risk insurers
The Basel Committee on Banking Supervision released a paper in August outlining what the insurance industry must do to design op risk transfer products, including insurance and capital markets products.
FSA study shows wide gap in firms' op risk frameworks
LONDON - In late July, the UK's FSA published a study of the practical implementation challenges that financial firms face when putting together an op risk infrastructure.
Framework developed for German banks
BONN, GERMANY - Many of Germany's banks have been somewhat slow to prepare their operational risk management framework for the new international bank capital accord, Basel II, and the prospective European Union (EU) Capital Adequacy Directive (Cad).
Exceptional operational risks: Three myths debunked
Are there common features among exceptional operational risks beyond their defining characteristics of rarity and severe consequences?
Op risk economic capital is 15%, says BIS study
Banks allocate an average of 15% of their economic capital for operational risk, according to a study released today by the Bank for International Settlements (BIS).
How to avoid overestimating capital charges for op risk
Pooling internal and external data is a central issue to estimating capital charges for operational risk. Here, Nicolas Baud, Antoine Frachot and Thierry Roncalli of Crédit Lyonnais discuss the methodology they have developed.
Profile: Dresdner makes loss prevention a new priority
Operational risk management is a management programme, not just a modelling exercise, according to Jonathan Howitt, director of operational risk at investment bank Dresdner Kleinwort Wasserstein in London.