Catastrophic and Operational Risk Measurement for Financial Institutions

2008 ◽  
Author(s):  
Antoaneta Serguieva ◽  
Stanislav Bozhkov ◽  
Keming Yu
Keyword(s):  
Financial Institutions ◽  
Operational Risk ◽  
Risk Measurement

A fuzzy logic risk control and self-assessment metrics for e-banking operational risk analysis

2021 ◽  
Vol 27 (2) ◽  
Author(s):  
R.E. Ako ◽  
D. Oghorodi ◽  
A.E. Okpako
Keyword(s):  
Decision Making ◽  
Fuzzy Logic ◽  
Risk Analysis ◽  
Financial Institutions ◽  
Operational Risk ◽  
Risk Measurement ◽  
Risk Exposure ◽  
Risk Level ◽  
Security Level ◽  
Exposure Level

Operational risk is the risk of losses arising from the failure or inadequate internal processes, human resources, systems, and external events that affect the bank's operations as defined by Basel Committee on Banking Supervision. Defining a suitable set of risk measurement metrics is considered one of the most important issues for any risk analysis. It enables the quantitative evaluation of the risk exposure level and the effectiveness of internal control system. Risk measurement is needed to provide an effective means to quantify the risk of existing or planned systems to enable understanding of the overall security level and to guide decision making. Given the number of successful attacks against financial Institutions and the sophistication of the tactics used by attackers, existing classical measurement approaches are no longer enough. This study focuses on fuzzy logic-based metric identification to measurement of the risk exposure level, to enable financial institutions to see the overall risk level and security state of their E-banking systems and to assist with decision making. This will provide a newer dimension to risk management by shifting from risk measurement based on probability and classical set theory to Fuzzy Logic (FL) measurement. In this paper fuzzy logic-based metrics is presented and expressed as a function of six factors (triggering events, avoidance, recovery, Undesirable Operational State (UOS), cost of Undesirable Operational State (UOS) occurrence and severity of risk occurrence) as proposed by [1].

Operational risk management in financial institutions: Process assessment in concordance with Basel II

2007 ◽  
Vol 12 (4) ◽  
pp. 321-330 ◽  
Author(s):  
B. Di Renzo ◽  
M. Hillairet ◽  
M. Picard ◽  
A. Rifaut ◽  
C. Bernard ◽  
...  
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Operational Risk ◽  
Basel Ii ◽  
Process Assessment ◽  
Operational Risk Management
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