While many organizations know how important operational risks are, they still continue to struggle with the best ways to identify and manage them. Organizations of all sizes and in all industries need best practices for identifying and managing key operational risks, if they intend on exceling in today's dynamic environment.
Operational Risk Management fills this need by providing both the new and experienced operational risk professional with all of the tools and best practices needed to implement a successful operational risk framework. It also provides real-life examples of successful methods and tools you can use while facing the cultural challenges that are prevalent in this field.
- Contains informative post-mortems on some of the most notorious operational risk events of our time
- Explores the future of operational risk in the current regulatory environment
- Written by a recognized global expert on operational risk
An effective operational risk framework is essential for today's organizations. This book will put you in a better position to develop one and use it to identify, assess, control, and mitigate any potential risks of this nature.
Table of Contents
Preface ix
Acknowledgments xi
Chapter 1 Definition and Drivers of Operational Risk 1
Chapter 2 The Regulatory Push 15
Chapter 3 The Operational Risk Framework 33
Chapter 4 Operational Risk Governance 41
Chapter 5 Culture and Awareness 63
Chapter 6 Policies and Procedures 77
Chapter 7 Internal Loss Data 89
Chapter 8 External Loss Data 121
Chapter 9 Business Environment Internal Control Factors: Key Risk Indicators 141
Chapter 10 Risk and Control Self-Assessments 155
Chapter 11 Scenario Analysis 173
Chapter 12 Capital Modeling 189
Chapter 13 Reporting 219
Chapter 14 Risk Appetite 237
Chapter 15 Reputational Risk and Operational Risk 255
Chapter 16 Operational Risk and Convergence 269
Chapter 17 Best Practices in Related Risk Management Activities 281
Chapter 18 Case Studies 291
Appendix: Answers to Review Questions 309
About the Author 317
About the Website 319
Index 321
