Building upon the first edition, this fully revised multi-contributor title brings you right up-to-date on all the latest issues and developments in the area of operational risk management and the regulatory environment. It discusses key topics including acquisition and merger risk, reputation risk, e-commerce risk, compliance issues as well as the lessons that can be learnt from non-financial firms. Reflecting the major developments that have occurred within operational risk practices, this completely updated edition will help to ensure that your systems comply with the very latest regulatory changes. It presents you with recent regulatory developments and progress including changes to Basel II and responses to it; the Basel Committee's "Quantitative Impact Study III" as well as new chapters on Moody's regulatory requirements. It offers both qualitative and quantitative approaches from all quarters including respected industry participants, regulators, industry bodies and academics active in the area of operational risk.
Introduction: Operational Risk Management: New Disciplines, New Opportunities Peyman Mestchian of SAS UK MANAGING OPERATIONAL RISK 1. Operational Risk Management: The Solution is in the Problem Peyman Mestchian of SAS UK 2. Managing Operational Risk Robert Hubner, Mark Laycock and Fred Peemoller of Deutsche Bank AG 3. New Trends in Operational Risk Insurance for Banks Brendon Young of ORRF and Simon Ashby of FSA 4. Operational Risk in Bank Acquisitions: A Real Options Approach to Valuing Managerial Flexibility Hemantha S. B. Herath of University of Northern British Columbia and John S. Jahera Jr of Auburn University 5. How to Introduce an Effective Operational Risk Management Framework Roland Kennett of BNP Paribas RISK ANALYSIS, IDENTIFICATION & MODELLING 6. Operational Risk Capital Allocation and Integration of Risks Elena A. Medova of University of Cambridge 7. Developing an Operational VAR Model using EVT Marcelo Cruz of RiskMaths 8. The Use of Reliability Theory in Measuring Operational Risk Patrick Mc Connell of Henley Management College 9. Model Selection for Operational Risk Michel Crouhy of CIBC, Dan Galai of Hebrew University and Robert Mark of Black Diamond 10. Model Error in Enterprise-wide Risk Management: Insurance Policies with Guarantees Andrea Consiglio of University of Cyprus and University of Palermo and Stavros A. Zenios of University of Cyprus and The Wharton School PRACTICAL IMPLEMENTATION 11. Building and Running an Operational Loss Database John Thirlwell of ORRF and BBA Global Operational Loss Database 12. Reputational Risk Peter Schofield of American Express Corporate Audit 13. Corporate Reputation: Not Worth Risking Knowledge@Wharton in association with Aon 14. Moody's Analytical Framework for Operational Risk Management of Banks Brendon Young of Moody's Investors Service Limited 15. From Operational Risk to Operational Excellence Barbara Dobeli of Swiss National Bank, Markus Leippold of University of Zurich and Paolo Vanini of University of Southern Switzerland and Zurich Cantonal Bank 16. The Legal and Regulatory View of Operational Risk Dermot Turing of Clifford Chance LLP