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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: 978-1-119-54907-9 December 2018 272 Pages



The Authoritative Guide to the Best Practices in Operational Risk Management

Operational Risk Management offers a comprehensive guide that contains a review of the most up-to-date and effective operational risk management practices in the financial services industry. The book provides an essential overview of the current methods and best practices applied in financial companies and also contains advanced tools and techniques developed by the most mature firms in the field.

The author explores the range of operational risks such as information security, fraud or reputation damage and details how to put in place an effective program based on the four main risk management activities: risk identification, risk assessment, risk mitigation and risk monitoring. The book also examines some specific types of operational risks that rank high on many firms' risk registers.

Drawing on the author's extensive experience working with and advising financial companies, Operational Risk Management is written both for those new to the discipline and for experienced operational risk managers who want to strengthen and consolidate their knowledge. 

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