Operational Risk Management, 2nd Edition

Operational Risk Management, 2nd Edition

by Philippa X. Girling
Released February 2022
Publisher(s): Wiley
ISBN: 9781119836049

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Book description

Identify, assess, and mitigate operational risk with this practical and authoritative guide

In the newly revised second edition of Operational Risk Management: A Complete Guide for Banking and Fintech, accomplished risk executive and expert Philippa Girling delivers an insightful and practical exploration of operational risk in organizations of all sizes. She offers risk professionals and executives the tools, strategies, and best practices they need to mitigate and overcome ever-present operational risk challenges that impact business in all industries.

This latest edition includes:

  • Insight into how operational risk can be effectively managed and measured in today's digital banking age.
  • Updates on the latest regulatory guidance on operational risk management requirements in all aspects of the operational risk framework.
  • Updates on the new Basel II capital modeling methodology for operational risk.
  • New explorations of operational risk events in recent years including the impact of the global Covid-19 pandemic.
  • Updated case studies including large events at Wells Fargo, Credit Suisse and Archegos Capital Management.

Ideal for executives, managers, and business leaders, Operational Risk Management is also the perfect resource for risk and compliance professionals who wish to refine their abilities to identify, assess, mitigate, and control operational risk.

Table of contents

  1. Cover
  2. Series Page
  3. Title Page
  4. Copyright
  5. Dedication
  6. Preface
  7. Acknowledgments
  8. CHAPTER 1: Definition and Drivers of Operational Risk
    1. THE DEFINITION OF OPERATIONAL RISK
    2. 2012 LONDON OLYMPICS: A CASE STUDY
    3. OPERATIONAL RISK MANAGEMENT AND OPERATIONAL RISK MEASUREMENT
    4. DRIVERS OF OPERATIONAL RISK MANAGEMENT
    5. KEY POINTS
    6. REVIEW QUESTIONS
    7. NOTES
  9. CHAPTER 2: The Regulatory Push
    1. HISTORY OF THE BASEL ACCORDS
    2. RULES OF THE ACCORDS
    3. ADOPTION OF BASEL II IN EUROPE
    4. ADOPTION OF BASEL II IN THE UNITED STATES
    5. IMPACT OF THE FINANCIAL CRISIS
    6. BASEL III
    7. KEY POINTS
    8. REVIEW QUESTIONS
    9. NOTES
  10. CHAPTER 3: The Operational Risk Framework
    1. OVERVIEW OF THE OPERATIONAL RISK FRAMEWORK
    2. THE FOUNDATIONS OF THE FRAMEWORK
    3. THE FOUR DATA BUILDING BLOCKS
    4. MEASUREMENT AND MODELING
    5. REPORTING
    6. RISK APPETITE
    7. KEY POINTS
    8. REVIEW QUESTIONS
    9. NOTE
  11. CHAPTER 4: Operational Risk Governance
    1. ROLE OF GOVERNANCE
    2. FIRST LINE OF DEFENSE
    3. SECOND LINE OF DEFENSE
    4. THIRD LINE OF DEFENSE
    5. RISK COMMITTEES
    6. KEY POINTS
    7. REVIEW QUESTIONS
    8. NOTES
  12. CHAPTER 5: Culture and Awareness
    1. WINNING OVER THE FIRM
    2. MARKETING AND COMMUNICATION
    3. AGILE
    4. TRAINING
    5. PLANNING
    6. THE “USE TEST”
    7. KEY POINTS
    8. REVIEW QUESTION
    9. NOTE
  13. CHAPTER 6: Policies and Procedures
    1. THE ROLE OF POLICIES, PROCEDURES, GUIDELINES, AND STANDARDS
    2. BEST PRACTICES
    3. OPERATIONAL RISK POLICY
    4. SAMPLE OPERATIONAL RISK POLICY
    5. SAMPLE STANDARDS, PROCEDURES, AND GUIDELINES
    6. KEY POINTS
    7. REVIEW QUESTION
    8. NOTE
  14. CHAPTER 7: Internal Operational Risk Event Loss Data
    1. OPERATIONAL RISK EVENT DATA
    2. INTERNAL LOSS DATA OR INTERNAL OPERATIONAL RISK EVENTS
    3. RISK EVENT CATEGORIES
    4. USING THE BASEL RISK CATEGORIES
    5. MINIMUM OPERATIONAL RISK EVENT DATA STANDARDS
    6. WHERE SHOULD OPERATIONAL RISK EVENT DATA BE COLLECTED?
    7. WHEN SHOULD OPERATIONAL RISK EVENT DATA BE COLLECTED?
    8. HOW SHOULD OPERATIONAL RISK EVENT DATA BE COLLECTED?
    9. KEY POINTS
    10. REVIEW QUESTIONS
    11. NOTES
  15. CHAPTER 8: External Loss Data
    1. EXTERNAL OPERATIONAL RISK EVENT DATA
    2. SOURCES OF EXTERNAL LOSS EVENT DATA
    3. CHALLENGES OF EXTERNAL DATA
    4. KEY POINTS
    5. REVIEW QUESTION
    6. NOTES
  16. CHAPTER 9: Key Risk Indicators
    1. KEY RISK INDICATORS
    2. SELECTING KRIS
    3. THRESHOLDS
    4. KRI STANDARDS
    5. KRI CHALLENGES
    6. METRICS EXAMPLES
    7. KEY POINTS
    8. REVIEW QUESTION
    9. NOTE
  17. CHAPTER 10: Risk and Control Self-Assessments
    1. THE ROLE OF ASSESSMENTS
    2. RCSA METHODS
    3. RCSA SCORING METHODS
    4. RCSA BEST PRACTICES
    5. KEY POINTS
    6. REVIEW QUESTION
    7. NOTE
  18. CHAPTER 11: Scenario Analysis
    1. ROLE OF SCENARIO ANALYSIS
    2. SCENARIO ANALYSIS APPROACHES
    3. SCENARIO ANALYSIS OUTPUT
    4. KEY POINTS
    5. REVIEW QUESTIONS
    6. NOTES
  19. CHAPTER 12: Capital Modeling
    1. OPERATIONAL RISK CAPITAL
    2. BASIC INDICATOR APPROACH
    3. STANDARDIZED APPROACH
    4. ADVANCED MEASUREMENT APPROACH
    5. INSURANCE
    6. FUTURE OF CAPITAL REQUIREMENTS: BASEL III
    7. KEY POINTS
    8. REVIEW QUESTIONS
    9. NOTES
  20. CHAPTER 13: Reporting
    1. ROLE OF REPORTING
    2. OPERATIONAL RISK EVENT REPORTING
    3. RISK AND CONTROL SELF-ASSESSMENT REPORTING
    4. KEY RISK INDICATOR REPORTING
    5. SCENARIO ANALYSIS REPORTING
    6. CAPITAL REPORTING
    7. ACTION TRACKING REPORTING
    8. A CONSOLIDATED VIEW
    9. DASHBOARDS
    10. KEY POINTS
    11. REVIEW QUESTION
  21. CHAPTER 14: Risk Appetite
    1. THE ROLE OF RISK APPETITE
    2. REGULATORY EXPECTATIONS
    3. IMPLEMENTING A RISK APPETITE FRAMEWORK
    4. MONITORING OPERATIONAL RISK APPETITE
    5. RISK APPETITE TODAY
    6. KEY POINTS
    7. REVIEW QUESTION
    8. NOTES
  22. CHAPTER 15: Reputational Risk and Operational Risk
    1. WHAT IS REPUTATIONAL RISK?
    2. REPUTATIONAL IMPACT
    3. REGULATORY OVERSIGHT OF REPUTATIONAL RISKS
    4. REPUTATIONAL RISK MANAGEMENT FRAMEWORK
    5. KEY POINTS
    6. REVIEW QUESTION
    7. NOTES
  23. CHAPTER 16: Operational Risk and Convergence
    1. OPERATIONAL RISK AS A CATALYST FOR CONVERGENCE
    2. GOVERNANCE, RISK, AND COMPLIANCE (GRC)
    3. CONVERGED OR GRC REPORTING
    4. KEY POINTS
    5. REVIEW QUESTION
    6. NOTES
  24. CHAPTER 17: Best Practices in Related Risk Management Activities
    1. NEW-PRODUCT APPROVAL
    2. SUPPLIER AND THIRD-PARTY RISK MANAGEMENT
    3. LEGAL RISK MANAGEMENT
    4. REGULATORY RISK MANAGEMENT
    5. PEOPLE RISK MANAGEMENT
    6. FRAUD RISK MANAGEMENT
    7. TECHNOLOGY RISK MANAGEMENT
    8. CLIMATE RISK
    9. PANDEMIC PLANNING
    10. STRATEGIC RISK
    11. KEY POINTS
    12. REVIEW QUESTION
    13. NOTES
  25. CHAPTER 18: Case Studies
    1. JPMORGAN WHALE: RISKY OR FRISKY?
    2. REVIEW QUESTIONS
    3. NOTES
  26. Appendix: Answers to Review Questions
    1. CHAPTER 1
    2. CHAPTER 2
    3. CHAPTER 3
    4. CHAPTER 4
    5. CHAPTER 5
    6. CHAPTER 6
    7. CHAPTER 7
    8. CHAPTER 8
    9. CHAPTER 9
    10. CHAPTER 10
    11. CHAPTER 11
    12. CHAPTER 12
    13. CHAPTER 13
    14. CHAPTER 14
    15. CHAPTER 15
    16. CHAPTER 16
    17. CHAPTER 17
    18. CHAPTER 18
    19. NOTES
  27. About the Author
  28. About the Website
  29. Index
  30. End User License Agreement

Product information

  • Title: Operational Risk Management, 2nd Edition
  • Author(s): Philippa X. Girling
  • Release date: February 2022
  • Publisher(s): Wiley
  • ISBN: 9781119836049