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Operational Risk Management: Best Practices in the Financial Services Industry




Operational Risk Management: Best Practices in the Financial Services Industry

Ariane Chapelle

ISBN: 978-1-119-54904-8 December 2018 272 Pages


The Authoritative Guide to the Best Practices in Operational Risk Management

Operational Risk Management offers the most current information available for putting in place an effective risk management program for a financial services firm. Comprehensive in scope, the book outlines the frameworks, tools and techniques that successful firms use to identify, assess, mitigate and monitor risk within their organisations. The different chapters present a holistic approach, which helps to clarify the relationship between the different components of a risk management framework and offers a consistent view of effective risk management. This flexible framework can be tailored to each firm based on its own practices, size and business complexity.

Operational Risk Management offers the information risk managers need not only to help their organisations avoid crises, but also to safely recognise new opportunities, achieve their full potential, and reach new heights of success.

About the Author xi

Foreword xiii

Preface xv

Introduction xix

PART ONE Risk Identification 1

CHAPTER 1 Risk Identification Tools 3

CHAPTER 2 Scenario Identification Process 13

CHAPTER 3 Risk Definition and Taxonomy 19

CHAPTER 4 Risk Connectivity and Risk Networks 29

PART TWO Risk Assessment 35

CHAPTER 5 Risk Appetite 37

CHAPTER 6 Risk and Control Self-Assessments 51

CHAPTER 7 Scenario Assessment 63

CHAPTER 8 Regulatory Capital and Modeling 77

PART THREE Risk Mitigation 93

CHAPTER 9 Operational Risk Governance 95

CHAPTER 10 Risk Mitigation 105

CHAPTER 11 Root Cause Analysis and Action Plans 115

CHAPTER 12 Conduct and Culture 119

PART FOUR Risk Monitoring 127

CHAPTER 13 Incident Data Collection 129

CHAPTER 14 Key Risk Indicators 141

CHAPTER 15 Risk Reporting 157

CHAPTER 16 Valuable ORM 171

PART FIVE Rising Operational Risks 179

CHAPTER 17 Project Risk Management 181

CHAPTER 18 Information Security Risks 193

CHAPTER 19 Operational Risks in Cryptocurrencies 207

CHAPTER 20 Resilience and Reputation 221

Conclusion 231

Index 235