Operational Risk Management

Foreword

It is both a pleasure and an honor to write the foreword of Ariane Chapelle's Operational Risk Management textbook.

Ariane is one of the world's leading teachers, thinkers and writers about operational risk. The combination of her professional experience as a practitioner in the financial services industry, her role as an advisor to regulators, her deep and growing knowledge of the multilateral financial institutions and her working relationship with professional risk associations (like PRMIA) gives her a unique perspective over the evolution of operational risk management practices, a breadth of recognition across the universe of risk professionals, and a depth of authority which make this textbook a “must read” at all levels of both regulated and unregulated financial institutions.

As we are fond of saying at the World Bank, there are no spectators in risk. Everybody has an essential role to play – and while financial or market risk remain the domain of expertise of a specialized few, operational risk is inherent to the working lives (not to mention personal lives) of everybody across the enterprise, whether public or private, financial or non‐financial, regulated or unregulated. Operational risk is now integral not only to problem fixing but also to product design and implementation, to the deployment of human capital across the globe and across business lines, and most importantly to risk governance and decision‐making at the C‐suite level.

In the same way that ...