Operational and Integrated Risk Management
Standardized Measurement Approach for Operational Risk
The Basel Committee emphasizes consistency in implementing post-crisis controlling reforms. This consistency improves the flexibility in the banking system, promotes public sureness, and brings a level playing field for international banks. In 2014, a committee addressed flaws in the current…
External Loss Data
External loss data is used in the operational risk framework to provide input to any operational risk calculation and valuable insights into these different forms of the risks. This external data in the advanced measurement approach (AMA) capital calculation is…
Repurchase Agreements and Financing
After completing this reading, you should be able to: Describe the mechanics of repurchase agreements (repos) and calculate the settlement for a repo transaction. Discuss common motivations for entering into repos, including their use in cash management and liquidity management….
Principles for the Sound Management of Operational Risk
After completing this reading you should be able to: Describe the three “lines of defense” in the Basel model for operational risk governance. Summarize the fundamental principles of operational risk management as suggested by the Basel Committee. Explain guidelines for…
Assessing the Quality of Risk Measures
[vsw id=”x_FZqIH8Db0″ source=”youtube” width=”611″ height=”344″ autoplay=”no”] After completing this reading, you should be able to: Describe ways that errors can be introduced into models. Explain how model risk and variability can arise through the implementation of VaR models and the…
OpRisk Data and Governance
After completing this reading, you should be able to: Describe the seven Basel II event risk categories and identify examples of operational risk events in each category. Summarize the process of collecting and reporting internal operational loss data, including the…
