Operational Risk

6 posts

Guiding principles for a viable open source operational risk model

Guiding principles for a viable open source operational risk model (OSORM) Such a framework: Must avoid formulaic inclusion of meaningless risk event types (e.g., legal risk created by the firm’s own management decisions) or any risks where the nature and state of current knowledge does not support any meaningful quantification. […]

Top 10 Risk Manual Articles

Top 10 Risk Manual Articles The current list of Top 10 Risk Manual Articles, sorted by reader popularity covers a range of topics in risk management. External Fraud, (Operational Risk) Herfindahl-Hirschman Index, (Concentration Risk) Hannah-Kay Index, (Concentration Risk) Concentration Ratio, (Concentration Risk) Granularity Adjustment, (Concentration Risk) Business Execution, (Operational Risk) […]

Reducing variation in credit risk-weighted assets – The benign and vicious cycles of internal risk models

Reducing variation in credit risk-weighted assets – The benign and vicious cycles of internal risk models March 2016 wasn’t a good month for so called “internal risk models”, the quantitative tools constructed by banks for determining such vital numbers as how much buffer capital is needed to protect the savings […]