Operational risk CPD resources for enterprise risk management
Operational risk has been described by the Basel Committee on Banking Supervision as "the risk of loss, resulting from inadequate or failed internal processes, people and systems, or from external events". The following links are grouped by financial institution and by topic.
Operational risk - general
- Operational risk management CRO Forum paper, May 2009.
- Basel Committee - Operational risk A site from the Bank of International Settlements.
- Sound practices for the management and supervision of operational risk Paper from the BIS on best practice operational risk management.
- Applying a structured approach to operational risk scenario analysis in Australia [pdf]. Information paper on operational risk scenario bias. Australian Prudential Regulation Authority, Sep 2007.
Life and general insurance operational risk
- Quantifying operational risk in life insurance companies [pdf]. Paper by the life operational risk working party.
- Operational Risk Consortium (ORIC) Founded by the Association of British Insurers (ABI) to provide thought leadership and enhance quantitative and qualitative understanding of operational risk.
- Operational Risk Consortium: risk event categories
- Analysing operational losses in insurance [pdf]. ABI/ORIC Research Paper, 2009.
Banking operational risk
- Results from the 2008 Loss Data Collection Exercise for operational risk [pdf]. Paper by the Basel Committee on Banking Supervision.
- Observed range of practice in key elements of Advanced measurement Approaches (AMA) [pdf]. Paper by the Basel Committee on Banking Supervision.
- Committee of European Banking Supervisors (CEBS). Consultation paper on the managment of operational risks in market-related activities, December 2009
- CEBS response, March 2010
Operational risk capital
- How to model operational risk, if you must [pdf]. Presentation by Paul Embrechts.
- Quantifying regulatory capital for operational risk [pdf]. Paper by Paul Embrechts, Hans Jorg Furrer and Roger Kaufmann.
Regulatory risk
- Financial Services Compensation Scheme
- Financial Ombudsman Service
- Financial Ombudsman Service annual review Reports with details of complaints by product.
- Unfair contract terms guidance Office of Fair Trading.
- Responsibilities of providers and distributors for the fair treatment of customers [pdf]. FSA paper which places significant obligations on providers and distributors, Jul 2007.
Rogue trading and other dealing risks
- List of large trading losses
- Commodities trading: Nick Leeson, internal controls and the collapse of Barings Bank [pdf]. [c2004]
- Société Generale: Rogue trader to cost SocGen $7bn BBC, 2008.
- Background paper on councils' use of interest rate swaps in the mid-1990s [pdf]. Hammersmith and Fulham OTC derivative event details, CIPFA, Oct 2007.
Other operational risk links
- Offshore operations: industry feedback [pdf]. Paper from the Financial Services Authority, 2005.
- KPMG publications KPMG produces regular updates on fraud, which members may be able to download for free.
Other areas of operational risk
These areas are being developed. If you have any interesting papers or sites which you feel should be included here, please let us know.
- Pension fund operational risk
- Asset management operational risk
If you have any interesting papers or sites on operational risk which you feel should be included here, please send them to Dawn McIntosh, the manager for the ERM practice executive committee (dawn.mcintosh@actuaries.org.uk).