Measuring and Managing Operational Risks in Financial Institutions: Tools, Techniques and Other Resources (Wiley Frontiers in Finance) - Tapa dura

A comprehensive and innovative look at how to protect financial institutions from operational risks Operational risk is the risk associated with human error, systems failures, and inadequate controls and procedures in information systems or internal controls that will result in an unexpected loss. According to a recent survey, about seventy percent of banks consider operational risk as important as market or credit risks. Nearly a quarter of the same banks admit to operation-related losses of more than USD1.6 million-many cases are so embarrassing that banks will not actually admit any error on their part. Firms are just beginning to develop their own operational risk management systems and they need guidance on how to do it. This book will help them identify, measure, and manage their operational risks. Christopher Marshall (Singapore) is Associate Director of the Center for Financial Engineering at the National University of Singapore. He has written numerous articles in Risk magazine and Harvard Business School cases.

Measuring and Managing Operational Risks in Financial Institutions describes the first systematic approach to identifying, measuring, analyzing, and managing all the operational exposures within a business. Starting with business lines? most critical processes and resources, the author explains how to use loss data to model the most significant discrete loss events and continuous risk factors that may affect them. It goes on to explain how risks can be aggregated over the entire business and therefore used to estimate the risk capital associated with different parts of the business. The author also develops a contingent approach to enterprise and operational risk management, going beyond the narrow functional approaches traditionally advocated by financial risk managers, insurance managers, quality engineers and the like.Measuring and Managing Operational Risks in Financial Institutions is essential reading for anyone involved in operational and enterprise-wide risk management.