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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
The use of insurance policies to mitigate operational risk 231
securities may be rated below A (see Chapter 12). As a Basel Committee document has
suggested, ‘Banks that use insurance should recognize that they might, in fact, be
replacing with operational risk counterparty risk.’ There are also questions relating
to:
Liquidity
Loss adjustment
Voidability
Moral hazards
Limits in product range, and
Inclusion of insurance pay-outs in internal loss data.
Another challenge is payment lag, that is to say, the time it takes for an insurance
company to pay damages associated to credit risk or operational risk. This is the
regulators’ largest reserve ...
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Publisher Resources

ISBN: 9780750659093