Managing Operational Risk

Contents

Introduction

Ch. 1 Operational Risk Management 101: An Executive Summary 1
Ch. 2 The Best Practice Strategies 18
Ch. 3 What Is Operational Risk? 28
Ch. 4 The Real Opportunity: Creating More Effective Companies 56
Ch. 5 Operational Risk and Market Perception: Franchise, Reputation, and Brand Risk 77
Ch. 6 The Enterprise-wide Framework: Corporate Governance, Mandate, and Roles 102
Ch. 7 The Operational Risk Management Group 134
Ch. 8 Risk Response Framework and Strategies 153
Ch. 9 Risk Assessment Strategies 181
Ch. 10 Databases and Consortia: Working Through the Details 213
Ch. 11 Risk Indicators and Scorecards: Cornerstones for Operational Risk Monitoring 238
Ch. 12 Operational Risk Analysis and Measurement: Practical Building Blocks 257
Ch. 13 Dynamic Risk Profiling and Monitoring 305
Ch. 14 Insurance and Operational Risks: Aligning Conventional Programs 331
Ch. 15 Operational Risk Finance: The Re-engineering Process 354
Ch. 16 Economic Risk Capital Modeling: Allocation and Attribution 375
Ch. 17 Regulatory Capital and Supervision 404
Ch. 18 An Operational Risk Management Case Study: Managing Internet Banking Risk 425
Ch. 19 Operational Risk Technology and Systems 448
Ch. 20 The Game Plan and Action Steps 475

Additional Readings 487
Operational Risk Management: Bibliography of Sources 488
Endnotes 508
Index