This paper considers the learning points from official third-party reports produced in the wake of supervisory failures that can be applied to the management of front-line bank supervisors.
Regulatory arbitrage in the use of insurance in the new standardized approach for operational risk capital
Basel’s new standardized approach (SA) for operational risk capital may allow for regulatory arbitrage through the use of insurance. Under the SA, banks will likely have an incentive to insure recurring losses. Such insurance can meaningfully reduce…
Op RWA relief offset increases due to credit, market risk
Also: Wells Fargo fee fight; Nasdaq queers Emir reg; Covid keeps AML fines in line. Data by ORX News
Critical variables in the implementation of a risk-based internal audit: a theoretical and empirical investigation of Greek companies
This paper investigates the critical variables for the implementation of RBIA in Greek companies and examines the relationship between the above variables and RBIA implementation using data collected by 105 internal auditors, external auditors, directors…
Buy-side use of average pricing contributed to rash of failed trades and give-ups last March
Flexible checks and balances at bank's asset management arm kept risks within tolerance
Risk Awards 2021: bank avoided tech snags and margin call surprises that plagued peers during crisis
Risk Awards 2021: new analytics dash helped bank get ahead of op risk breaches during Covid crisis
This introduction to the Journal of Operational Risk special issue shines a light on the relationship between financial fraud risks and financial stability.
Financial fraud and fat fingers loom large, but annual top 10 op risk losses still show fewer fails. Data by ORX News
Appointment follows departure of Bakhshi to CRO role at LSEG
The authors investigate the financial structure of Jet Airways, with the aim of understanding whether financial turbulence for an airline company can constitute an antecedent for predicting the risk of bankruptcy.
When we examine what’s required of them, do risk committees hold water, asks ex-SEC risk oversight chief
Advanced measurement approach is the preserve of large banks
Asia Risk 25: Data and AI are top technology priorities for Singapore bank, says Piyush Gupta
This paper sets out ten laws that govern the behavior of operational risk relating to the occurrence and detection/duration of events; the rapidity with which firms suffer losses; the lags in crystallization of losses; and internal and external drivers…
Quantification of regulatory capital for management of operational risk in banks: study from an emerging market economy
This paper studies the various methodologies used by an Indian bank in its operational risk management activities: these include loss database analysis, risk control self-assessment and key risk indicator (KRI) identification.
Asia Risk 25: Even as the level of regulatory scrutiny peaks, meaningful change eludes the region’s banks
About 40% of total Tier 1 capital surge due to limits on modelled RWAs
Is there anybody out there? Detecting operational outages from Large Value Transfer System transaction data
This paper develops a method to identify operational outages of participants in the Canadian Large Value Transfer System (LVTS).
German lender expects capital release unit to be €51 billion in size in 2022
Also: CEO clawbacks; Barclays timeshare trials; Fifa bankers' foul play. Data by ORX News
FX settlement giant not fast on its feet, say dealers and challengers, but hard to knock down