Operational Risk Management: A Complete Guide to a Successful Operational Risk Framework

Preface

The evolution of operational risk over the past 10 years has given rise to a new profession: the operational risk manager. This book equips the student or practitioner of operational risk with all of the framework elements that are needed in order to establish a successful operational risk framework.

While best practices and regulatory guidelines are readily available for both the qualitative and the quantitative elements of operational risk, many firms are still struggling with the practical implementation of operational risk frameworks. This book provides real-life examples of successful methods and tools while facing head-on the cultural challenges that are prevalent in this field.

Today, chief risk officers are finding themselves facing the daunting task of providing assurances to senior management and to board members that operational risks are being effectively managed and mitigated. Traditional market and credit risk approaches offer only partial effectiveness in the operational risk field, and this book explores the unique qualitative aspects of operational risk management.

This book also provides insight into some of the (often notorious) operational risk events that have occurred in the past 10 years, with analysis of the JPMorgan Whale event, the UBS and Société Générale unauthorized trading scandals, the Knight Capital technology misstep and the management of operational risk at the 2012 London Olympics.

The author explores how the regulatory framework has ...