Operational Risk Management

A best practices guide to all of the elements of an effective operational risk framework While many organizations know how important operational risks are, they still continue to struggle with the best ways to identify and manage them. Organizations of all sizes and in all industries need best practices for identifying and managing key operational risks, if they intend on exceling in today's dynamic environment. Operational Risk Management fills this need by providing both the new and experienced operational risk professional with all of the tools and best practices needed to implement a successful operational risk framework. It also provides real-life examples of successful methods and tools you can use while facing the cultural challenges that are prevalent in this field. Contains informative post-mortems on some of the most notorious operational risk events of our time Explores the future of operational risk in the current regulatory environment Written by a recognized global expert on operational risk An effective operational risk framework is essential for today's organizations. This book will put you in a better position to develop one and use it to identify, assess, control, and mitigate any potential risks of this nature.

A best practices guide to all of the elements of an effective operational risk frameworkWhile many organizations know how important operational risks are, they still continue to struggle with the best ways to identify and manage them. Organizations of all sizes and in all industries need best practices for identifying and managing key operational risks, if they intend on exceling in today's dynamic environment.Operational Risk Management fills this need by providing both the new and experienced operational risk professional with all of the tools and best practices needed to implement a successful operational risk framework. It also provides real-life examples of successful methods and tools you can use while facing the cultural challenges that are prevalent in this field.* Contains informative post-mortems on some of the most notorious operational risk events of our time* Explores the future of operational risk in the current regulatory environment* Written by a recognized global expert on operational riskAn effective operational risk framework is essential for today's organizations. This book will put you in a better position to develop one and use it to identify, assess, control, and mitigate any potential risks of this nature.

Preface ixAcknowledgments xiChapter 1 Definition and Drivers of Operational Risk 1Chapter 2 The Regulatory Push 15Chapter 3 The Operational Risk Framework 33Chapter 4 Operational Risk Governance 41Chapter 5 Culture and Awareness 63Chapter 6 Policies and Procedures 77Chapter 7 Internal Loss Data 89Chapter 8 External Loss Data 121Chapter 9 Business Environment Internal Control Factors: Key Risk Indicators 141Chapter 10 Risk and Control Self-Assessments 155Chapter 11 Scenario Analysis 173Chapter 12 Capital Modeling 189Chapter 13 Reporting 219Chapter 14 Risk Appetite 237Chapter 15 Reputational Risk and Operational Risk 255Chapter 16 Operational Risk and Convergence 269Chapter 17 Best Practices in Related Risk Management Activities 281Chapter 18 Case Studies 291Appendix: Answers to Review Questions 309About the Author 317About the Website 319Index 321