Managing Operational Risk
Operational risk should take an equal place alongside credit and market risk in the risk management strategy of all financial institutions. This volume is an invaluable guide to operational risks and their mitigation. Divided into four sections it begins by identifying twelve factors that characterise operational risk. The first section examines operational risk in the contexts of merchant, corporate, investment and private banking and the insurance industry. The second demonstrates how operational risk can be managed and controlled and examines cases of operational failure, including Credit Lyonnais and NatWest Markets. The third identifies legal risk including cross-border conflicts of law, compliance and taxation issues and environmental factors. The final section assesses the risk in payments and settlements including dematerialisation, the role of IT solutions, handling intraday exposure and delivery vs payment issues. Every financial institution should understand and protect against these risks and this unique and timely guide will ensure you establish an effective strategy for managing operational risk.
".another tour de force on the part of Dr. Chorafas.the true nature and ramifications of operational risk are superbly illustrated" Gunnar T. Andersen, Managing Director & Member of the Executive Board, International Banking & Treasury, Landsbanki Íslands h.f.
Every financial institution should understand and protect against these risks and guide will ensure you establish an effective strategy for managing operational risk.