Operational Risk Management in Financial Services and the New Basel Accord

2003 ◽  
Author(s):  
Fotios Harmantzis
Keyword(s):  
Risk Management ◽  
Financial Services ◽  
Operational Risk ◽  
Basel Accord ◽  
Operational Risk Management ◽  
New Basel Accord

Operational Risk Management Under Basel II: The Case of the Spanish Financial Services

2005 ◽  
Author(s):  
Ana Fernández Laviada ◽  
Francisco J. Martinez Garcia ◽  
Francisco M. Somohano
Keyword(s):  
Risk Management ◽  
Financial Services ◽  
Operational Risk ◽  
Basel Ii ◽  
Operational Risk Management

scholarly journals Operational Risk Management under Basel II - The Case of An Binh Joint Stock Bank

2016 ◽  
Vol 19 (4) ◽  
pp. 108-126
Author(s):  
Trung Quoc Trinh ◽  
Thuy Thu Pham
Keyword(s):  
Risk Management ◽  
Financial Services ◽  
Commercial Banks ◽  
Banking System ◽  
Operational Risk ◽  
Business Environment ◽  
Basel Ii ◽  
Global Market ◽  
Local Market ◽  
Operational Risk Management

In order to enhance commercial banks’ safety in financial services, Basel Committee on Banking Supervision issued a framework on operational risk management under Basel II. In an ever riskier business environment, it is necessary for Vietnam’s commercial banks to increase their competencies in risk management, especially in operational risk management. This is to ensure a sustainable development for banks in the local market and in the global market as well. In recent years, Vietnam’s commercial banks have developed systems for operational risk management. Therefore, the performance assessment is of importance to improve and enlarge applications on operational risk management, from perceptions, corporate’s culture, procedures to other supportive measures on the field of risk management in Vietnam’s banking system.

Operational Risk Management: A Stochastic Control Framework with Preventive and Corrective Controls

2020 ◽  
Vol 68 (6) ◽  
pp. 1804-1825
Author(s):  
Yuqian Xu ◽  
Lingjiong Zhu ◽  
Michael Pinedo
Keyword(s):  
Risk Management ◽  
Stochastic Control ◽  
Financial Services ◽  
Operational Risk ◽  
Investment Strategy ◽  
Modeling Framework ◽  
Data Set ◽  
Operational Risk Management ◽  
Financial Firms ◽  
Control Framework

Financial services firms are subject to various types of risks. In particular, operational risk is difficult to assess and can be devastating, although it is often perceived by a firm's management as being more controllable than the cost of managing other types of risks. Understanding the management problems associated with operational risk is crucial to the performance of the firm. In “Operational Risk Management: A Stochastic Control Framework with Preventive and Corrective Controls,” Xu, Zhu, and Pinedo introduce a general modeling framework for operational risk management for financial firms. They propose two types of controls and characterize the optimal control policies. They apply their model to a data set from a commercial bank, and through a proper investment strategy, one can achieve a significant performance improvement.

scholarly journals Challenges facing banks in emerging countries to be Basel compliant for operational risk

2008 ◽  
Vol 5 (3) ◽  
pp. 284-290
Author(s):  
Jackie Young
Keyword(s):  
Risk Management ◽  
Operational Risk ◽  
Central Banks ◽  
Emerging Countries ◽  
Practical Approach ◽  
Basel Accord ◽  
Management Framework ◽  
Operational Risk Management ◽  
Risk Management Framework ◽  
Critical Issues

The New Basel Accord identified various requirements for an effective operational risk management framework. Most central banks and regulators adopted these requirements for their own banking environments. However, there are many challenges facing these banks to ensure the effective incorporation of such a framework. An end-result of establishing an operational risk management framework is to calculate and allocate a realistic capital charge for operational risk. To achieve this, various principles and methodologies must be embedded that will ensure a practical approach to operational risk management. This paper aims to identify certain critical issues and challenges for banks of emerging countries to consider when developing an operational risk management framework in order to comply with the Basel requirements.

scholarly journals Critical success factors for the implementation of an operational risk management system

2012 ◽  
Vol 10 (1) ◽  
pp. 137-147
Author(s):  
M.D. Gibson ◽  
Jacobus Young
Keyword(s):  
Risk Management ◽  
Financial Services ◽  
Management System ◽  
Critical Success Factors ◽  
Success Factors ◽  
Operational Risk ◽  
Operational Risk Management ◽  
Critical Success ◽  
Risk Management System ◽  
Implementation Failure

Operational risk has become an increasingly important topic within financial institutions resulting in an increased spend on operational risk management solutions. While this is a positive approach, evidence has shown that information technology implementations have tended to have low rates of success. Research has highlighted that a series of defined critical success factors could reduce the risk of implementation failure. Twenty-nine critical success factors were identified by means of a literature review and confirmed by a questionnaire that was distributed to an identified target group within the South African financial services community. Reponses to the questionnaire revealed that 27 of the 29 critical success factors were deemed important and critical to the implementation of an operational risk management system.

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