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Operational Risk Control with Basel II
book

Operational Risk Control with Basel II

by Dimitris N. Chorafas
November 2003
Intermediate to advanced content levelIntermediate to advanced
400 pages
12h 48m
English
Butterworth-Heinemann
Content preview from Operational Risk Control with Basel II
314 Operational Risk Control
Speaking from personal experience, a number of companies have no idea what their
costs are, which is evidently silly. While operational risk must be controlled in a
rigorous and determined manner, both cost and return on investment should be taken
into account. As Figure 15.1 shows, their relationship is not characterized by a
straight line but by a U-curve. Throwing money at the problem solves nothing.
Optimization is, therefore, absolutely necessary.
What I have said in the preceding paragraph is that much more true as the overall
cost of operational risk control will, in all likelihood, end by being quite high. The
exact ...
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Publisher Resources

ISBN: 9780750659093