Managing Operational Risk
Details of the 20 best management strategies for operational risk\ "Finally, we have a comprehensive, practical tool for operational risk. This book covers all critical aspects of operational risk, from simply how to get started to the complex modeling of the risk. The case studies are especially useful."\ -Mark Balfan Senior Vice President and Group Head, Corporate Risk Management Bank of Tokyo Mitsubishi\ "Doug Hoffman was in the business of managing operational risk before most and it...
Search in google:
For today's financial institutions, Managing Operational Risk has the essential business tools to design optimal risk management programs and put your company well ahead of the curve in the face of anticipated new regulatory standards and capital requirements. This definitive book by an international expert covers every aspect of managing operational risk, including operational risk definitions, data collection, risk assessment, modeling, insurance, and risk finance, as well as a comprehensive introduction to information technology.The complete evolution of operational risk management is covered here, including guidelines for setting objectives consistent with a corporate vision, educating management and staff on how to deal with operational risks, coordinating operational risk management functions, outlining various approaches to risk assessment and measurement, and examining techniques for responding to operational risk. This book supplements its descriptions by presenting varied approaches to each of the 20 featured strategies along with alternative tools and tactics for program development, so you can decide which management systems are best for your company. The author goes well beyond the usual downside-only perspective on operational risk management to explore the upside benefits of an effective enterprise-wide program. Each chapter is generously supplemented with cases that illustrate proven techniques, and cautions against techniques that have not been successful. In addition, financial considerations are addressed, including developing economic capital and regulatory models, insurance and risk finance, as well as risk-adjusted performance measures.With a concluding synopsis of chapter highlights and lessons learned for easy skimming and quick reference, this is an essential resource for operational risk managers as well as CEOs and CFOs at investment and commercial banks, brokerages, insurance companies, mutual fund companies, and their e-business affiliates and subsidiaries.
http://catalogimages.wiley.com/images/db/pdf/U0471412686.01.pdf
IntroductionCh. 1Operational Risk Management 101: An Executive Summary1Ch. 2The Best Practice Strategies18Ch. 3What Is Operational Risk?28Ch. 4The Real Opportunity: Creating More Effective Companies56Ch. 5Operational Risk and Market Perception: Franchise, Reputation, and Brand Risk77Ch. 6The Enterprise-wide Framework: Corporate Governance, Mandate, and Roles102Ch. 7The Operational Risk Management Group134Ch. 8Risk Response Framework and Strategies153Ch. 9Risk Assessment Strategies181Ch. 10Databases and Consortia: Working Through the Details213Ch. 11Risk Indicators and Scorecards: Cornerstones for Operational Risk Monitoring238Ch. 12Operational Risk Analysis and Measurement: Practical Building Blocks257Ch. 13Dynamic Risk Profiling and Monitoring305Ch. 14Insurance and Operational Risks: Aligning Conventional Programs331Ch. 15Operational Risk Finance: The Re-engineering Process354Ch. 16Economic Risk Capital Modeling: Allocation and Attribution375Ch. 17Regulatory Capital and Supervision404Ch. 18An Operational Risk Management Case Study: Managing Internet Banking Risk425Ch. 19Operational Risk Technology and Systems448Ch. 20The Game Plan and Action Steps475Additional Readings487Operational Risk Management: Bibliography of Sources488Endnotes508Index525
