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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
Legal risk 55
3.4 Contractual aspects of legal risk
An examination of contractual aspects of legal risk is important because, fundamen-
tally, the business of a credit institution can be analysed as a series of contracts. In all
likelihood, operational risk will be embedded into each one of them. The probability
of future legal risk is highly influenced by:
The clauses in the contract with the counterparty, and
The credit risk and market risk assumed by each party.
New laws may bring up new contractual risks. The Gramm–Leach–Bliley Act of
1999, which repealed the Depression-era prohibition against combining commercial
and investment banking, could ...
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Publisher Resources

ISBN: 9780750659093