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Operational Risk Management

Book Description

A practical guide to identifying, analyzing and tackling operational risk in banks and financial institutions

Created for banking and finance professionals with a desire to expand their management skill set, this book focuses on operational risk and operational risk events, as distinct from other types of functional risks. It was written by the experts at the world-renowned Hong Kong Institute of Bankers, an organization dedicated to providing the international banking community with education and training.

  • Schools you in techniques for analyzing the operational risk exposure of banking institutions and assessing how operational risk impacts on other types of risk

  • Provides expert guidance on how to design, plan and implement systems for operational risk management and quality control

  • Describes a comprehensive approach to operational risk management that includes data collection, modeling and an overall risk management structure

  • Shows you how to develop operational risk management solutions to help your company minimize losses without negatively impacting its ability to generate gains

  • Offers expert guidance on various regulatory frameworks and how the latest Basel II and Basel III requirements impact a bank's operational risk management strategy and framework

Table of Contents

  1. Cover
  2. Contents
  3. Title
  4. Copyright
  5. Preface
  6. Part 1: Operational Risk in The Banking Industry
    1. Chapter 1: Overview and Definition
      1. Introduction
      2. What is Operational Risk?
      3. Important Operational Risk Events
      4. Distinguished From Other Risks
      5. Distinguished From Operations Risk
      6. Boundaries of Operational Risk
      7. Drivers of Operational Risk Management
      8. Integrating Related Disciplines
      9. Summary
      10. Key Terms
      11. Study Guide
      12. Further Reading
    2. Chapter 2: Operational Risk Management Frameworks
      1. Introduction
      2. Operational Risk Management Frameworks
      3. ORM Frameworks and Goals
      4. Summary
      5. Key Terms
      6. Study Guide
      7. Further Reading
    3. Chapter 3: Case Studies
      1. Introduction
      2. Categories of Operational Risk
      3. Lessons in ORM
      4. Summary
      5. Key Terms
      6. Study Guide
      7. Further Reading
  7. Part 2: Operational Risk Planning
    1. Chapter 4: Methods and Tools
      1. Introduction
      2. The ORM Process
      3. Managing Operational Risk
      4. Summary
      5. Key Terms
      6. Study Guide
      7. Further Reading
    2. Chapter 5: Risk Identification
      1. Introduction
      2. Assessing Risk
      3. Categorising Risk
      4. Summary
      5. Key Terms
      6. Study Guide
      7. Further Reading
    3. Chapter 6: Risk Measurement and Assessment
      1. Introduction
      2. Impact and Probability
      3. Value-at-Risk
      4. Loss and Capital Charge
      5. Summary
      6. Key Terms
      7. Study Guide
      8. Further Reading
  8. Part 3: Operational Risk Management
    1. Chapter 7: Risk Control and Mitigation
      1. Introduction
      2. Incident Management
      3. Assumptions, Avoidance, and Transference
      4. Insurance
      5. Internal Controls
      6. Contingency Planning
      7. Summary
      8. Key Terms
      9. Study Guide
      10. Further Reading
    2. Chapter 8: Risk Reporting
      1. Introduction
      2. Risk Profile
      3. Reporting
      4. Incidents and Data Reporting
      5. Summary
      6. Key Terms
      7. Study Guide
      8. Further Reading
    3. Chapter 9: Related Techniques
      1. Introduction
      2. Scenario Analysis
      3. Stress Testing
      4. Operational Risk Models
      5. Summary
      6. Key Terms
      7. Study Guide
      8. Further Reading
  9. Part 4: Regulatory Approaches to Operational Risk
    1. Chapter 10: Regulatory Requirements
      1. Introduction
      2. Basel II
      3. Basel III
      4. HKMA Risk-Based Supervisory Approach
      5. Approaches to Assessment
      6. Basel III Risk Exposures
      7. Summary
      8. Key Terms
      9. Study Guide
      10. Further Reading
    2. Chapter 11: Risk Governance
      1. Introduction
      2. Risk Governance Structure
      3. Other Considerations
      4. RCSA, KRIs, and Risk Events
      5. Summary
      6. Key Terms
      7. Study Guide
      8. Further Reading
  10. Index