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.
New KRI project kicked off by ABA Risk managers on the move ahead of AMA roll-outs
Implementation Outlook
Major op risk software providers grow at expense of smaller rivals
Sales of operational risk solutions seem to be on the rise, but it is established vendors who are seeing deals close. Many small or new software houses in the op risk space seem still to be experiencing a lull in sales.
Aon warns of political risk in lucrative emerging markets
Implementation outlook
Losses and lawsuits
Loss database
Mitsubishi implements Portia
Technology
BITS publishes aggregation guidelines
Technology
Technology briefs
Technology briefs
Understand qualitative aspects of operational risk first, says DTCC
Implementation Outlook
UK's FSA reforms ORIAG as ORSG
The UK's Financial Services Authority (FSA) has reformed its Operational Risk Implementation Advisory Group (ORIAG) as the Operational Risk Standing Group (ORSG), after deciding to disband ORIAG in the fourth quarter of 2003. The group is being chaired…
Op risk systems come to the fore
Operational risk came to the fore in 2003. Major software suppliers such as SunGard and SAS entered the market through partnerships with or acquisition of early entrant developers, while a number of established trading and risk management systems…
Sponsor's article > Banks look for savings with ORM
Operational risk management (ORM) is now under the spotlight with banks realising that there are savings to be made, according to a recent survey by SunGard Trading and Risk Systems. SunGard also found that Basel II is a significant driver for ORM…
Basel II to help community banks manage op risk
Cover story
Technology briefs
Technology
Isda calls for trade automation
Implementation Outlook
No industry consensus on op risk spending for 2004
Spending on operational risk management software looks set to grow in 2004 compared with last year, but will not reach its peak for another year or two.
Regulators' operational risk definitions criticised
The lack of a common agreement on the definition of operational risk by regulators will cause serious problems for global financial institutions, said Joanna Benjamin, a consultant to law firm Clifford Chance, at a late-November seminar at the firm's…
Bank of England publishes operational contingencies report
The Bank of England yesterday published an eagerly awaited report on how the government would handle a disaster striking the financial sector, such as a terrorist bombing.
Insurers must do better - FSA
A new study by the UK's Financial Services Authority into risk management at insurance firms concludes that, although practices are improving in general, there is a long way to go before insurers are at the same standard as other types of financial…
Operational and market risks of a regulated power utility
Victor Dvortsov and Ken Dragoon present an analytical method for including market and operational risks when estimating utility portfolio value-at-risk
Measuring operational risk: a reality check
In the second of two articles on operational risk, Mark Holmes looks at the measurement issues involved, taking a constructively critical look at the ideas currently in vogue.