Measuring and Managing Operational Risks in Financial Institutions: Tools, Techniques, and Other Resources / Edition 1 available in Hardcover
- Pub. Date:
A comprehensive and innovative look at how to protect financial institutions from operational risks
Operational risk is the risk associated with human error, systems failures, and inadequate controls and procedures in information systems or internal controls that will result in an unexpected loss. According to a recent survey, about seventy percent of banks consider operational risk as important as market or credit risks. Nearly a quarter of the same banks admit to operation-related losses of more than $1.6 million-many cases are so embarrassing that banks will not actually admit any error on their part. Firms are just beginning to develop their own operational risk management systems and they need guidance on how to do it. This book will help them identify, measure, and manage their operational risks.
Christopher Marshall (Singapore) is Associate Director of the Center for Financial Engineering at the National University of Singapore. He has written numerous articles in Risk magazine and Harvard Business School cases.
Table of Contents
Models of Operational Risk.
AN OPERATIONAL RISK MANAGEMENT METHODOLOGY.
Developing Objectives for Risk Management.
Identifying the Risks.
Estimating Potential Losses: Data.
Estimating Potential Losses: Loss Distributions.
RISK MANAGEMENT ACTIONS.
Risk Avoidance and Factor Management.
Loss Reduction and Contingency Management.
OPERATIONAL RISK MANAGEMENT IN PRACTICE.
Monitoring and Reporting Operational Risks.
Appendix A: A Glossary of Operational Risk.
Appendix B: Operational Risk Management Software and Services.