Operations Risk (eBook)

Managing a Key Component of Operational Risk

David Loader (Autor)

eBook Download: PDF

2011 | 1. Auflage
192 Seiten
Elsevier Science (Verlag)
978-0-08-046948-5 (ISBN)

Infos

Operations Risk--a form of Operational Risk, is becoming increasingly important as more and more sophisticated products and the use of those products occurs in the financial services industry. Outsourcing, including overseas outsourcing, is changing the structure of firms and particularly operations teams. Thus understanding the existing and the changing risk environment in operations functions and its impact on operational risk is centrally important today. The book focuses on areas such as technology risk, people risk, and settlement risk, examining the dangers that lurk within different organisations. Case studies throughout the book illustrate the way in which risk can become magnified and ultimately become a serious danger to the businesses concerned. The reader is challenged throughout the book to interpret given situations in Operations Risk so as to understand the impact of the risks and devise solutions through a series of exercises included in the relevant chapters. (answers are provided). This self-test approach will help reinforce understanding of the detailed material contained throughout the book.

*Offers the knowledge, tools, techniques, and solutions necessary to recognize and evaluate operations risk
*Concise, easy to read format provides practical solutions and techniques that readers can implement tomorrow
*Case studies and self-test features ensure practical understanding.

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Operations Risk--a form of Operational Risk, is becoming increasingly important as more and more sophisticated products and the use of those products occurs in the financial services industry. Outsourcing, including overseas outsourcing, is changing the structure of firms and particularly operations teams. Thus understanding the existing and the changing risk environment in operations functions and its impact on operational risk is centrally important today. The book focuses on areas such as technology risk, people risk, and settlement risk, examining the dangers that lurk within different organisations. Case studies throughout the book illustrate the way in which risk can become magnified and ultimately become a serious danger to the businesses concerned. The reader is challenged throughout the book to interpret given situations in Operations Risk so as to understand the impact of the risks and devise solutions through a series of exercises included in the relevant chapters. (answers are provided). This "e;self-test approach will help reinforce understanding of the detailed material contained throughout the book.*Offers the knowledge, tools, techniques, and solutions necessary to recognize and evaluate operations risk*Concise, easy to read format provides practical solutions and techniques that readers can implement tomorrow *Case studies and "e;self-test"e; features ensure practical understanding.

Inhalt

Front Cover 1
Operations Risk 4
Copyright Page 5
Table of Contents 6
Introduction 9
Chapter 1 The operational risk universe 12
Post barings 16
The influence of BIS 17
Operational risk management 17
Types of risk 18
Chapter 2 Defining operations risk in investment and retail banking 19
Retail banking 19
Managing operations risk in retail banking 20
Types of operations risk affecting retail banks 22
Customer account errors 23
Immediate observations 23
Possible outcomes 23
Action 24
Risk impact 24
Damage limitation and preventative action 24
Managing other operations risks 25
Risk in Investment Banking 25
Chapter 3 Operations risk 27
Analysing the risk value 30
Summary of operations risk 33
Market risk 33
Management risk 34
Market or principal risk 34
Credit or counterparty risk 36
Operational risk 36
Other risks 43
Understanding risk 44
Operations management 45
Chapter 4 Managing the risk 46
How does the business manage operations risk? 46
Devising a strategy to manage operations risk 47
Self-assessment techniques 47
“Risk envelopes” 49
“Risk waves” 50
“Risk scoring” 52
“Fishbone analysis of cause” 53
Risk volcanoes 54
Summary 56
Chapter 5 Understanding a risk event 57
Pre-event 57
Time lag 60
Realisation 60
Mitigation 61
Lessons learned 62
Chapter 6 Workflow and operations risk 63
People 63
Management 65
Analysing risk in the workflow 66
Analysing workflow 67
Chapter 7 Risk and regulation 71
Regulation in respect of custody services 73
Regulation affecting brokers and fund management companies 73
Exchange and clearing house regulation 74
Summary details on regulation 74
Summary 75
Chapter 8 Innovative tools to manage people risks 76
Analysing Hypnotherapy as a tool to reduce operations risk 76
Hypnotherapy 78
Chapter 9 Insourcing and outsourcing risk 80
Guiding principles – Overview 80
Case study 1: German loan factory 82
Case study 2: Australian regulator investigates bank outsourcing 82
Case study 3: Outsourcing unit pricing for managed funds 83
Case study 4: OCC action against a bank and service provider 83
Case study 5: Joint examinations of third-party service providers in the United States 84
Summary 86
Glossary of risk terminology 87
Publications 98
Useful websites 99
Appendix 1: Consolidated KYC risk management 100
Introduction 101
Global process for managing KYC risks 102
Customer acceptance policy 102
Customer identification 102
Monitoring of accounts and transactions 103
Consolidated risk management and information sharing 104
Mixed financial groups 101
The role of the supervisor 101
Appendix 2: A collection of excerpts and published operational risk guidelines and recommendations 107
Derivatives 107
About the FOA 115
Appendix 3: Global clearing and settlement – The G30 twenty recommendations 116
Managing Operational Risk 117
FX Settlement Risk 119
Why CLS? 120
How CLS works 120
CLS in business 121
Who is involved 122
Settlement Members’ customers 124
CLS group of companies 124
Appendix 4: ISSA recommendations 2000 127
International Securities Services Association ISSA 129
1. Introduction 133
1.1 Objectives of this Report 133
1.2 Overview of the Process 134
1.3 Relationship Between the ISSA Recommendations and Other Initiatives 136
2. Summary and Conclusions 140
3. Action Plan and Prioritisation 155
Appendix I: Full Wording of the ISSA Recommendations 2000 165
Appendix II: Summary of Second Network Managers Meeting 169
Appendix III: Contributing and Validating Institutions 177
Index 182

Produkt-Details

• Erscheint lt. Verlag: 23.2.2011
• Sprache: englisch
• Themenwelt: Sachbuch/Ratgeber ► Beruf / Finanzen / Recht / Wirtschaft ► Geld / Bank / Börse
• Themenwelt: Recht / Steuern ► Wirtschaftsrecht
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Logistik / Produktion
• Themenwelt: Betriebswirtschaft / Management ► Spezielle Betriebswirtschaftslehre ► Bankbetriebslehre
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Wirtschaftsinformatik
• ISBN-10: 0-08-046948-5 / 0080469485
• ISBN-13: 978-0-08-046948-5 / 9780080469485