Reputational Risk Management in Financial Institutions

Reputational Risk Management in Financial Institutions

Country and Political Risk (2nd edition)

Country and Political Risk (2nd edition)

The Operational Risk Manager's Guide (2nd Edition)

£265.00

Three years and one world crisis later, The Operational Risk Manager’s Guide is back in a revised, enriched second edition that brings you many more conceptual insights and practical ideas on how to be successful at operational risk management.

“It is required reading for risk managers and all concerned with the management of risks in general.”

Bernard Tschupp, Head of Compliance and Operational Risk, Bank for International Settlements

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ISBN
The Operational Risk Manager's Guide (2nd Edition)

Sergio Scandizzo has updated and expanded The Operational Risk Manager’s Guide in light of the 2007-9 crisis. The credit losses incurred have been exposed as primarily governance and operationally driven. In other words, credit losses were caused by failures in the governance of risk or in risk management operational standards. Increasingly as they recognize this banks and supervisors are looking to strengthen the risk management process.

With the need to pay close attention to the oversight of risk management and to risks like liquidity, reputation, governance and extreme scenarios (fat tails), there is a need for operational risk managers to step up to the mark. Operational risk managers have the natural firm-wide outlook necessary to bring these risks into their remit. The updates to The Operational Risk Manager’s Guide delivers practical information on how the operational risk manager’s role has expanded since the 2007-9 crisis and how to manage these new responsibilities.

The Operational Risk Manager’s Guide, Second Edition leads you step-by-step through the key practices and responsibilities of being an operational risk manager. As the reader you are presented with a set of typical scenarios and shown how to manage these pressing demands and take strategic decisions. Written in an authoritative and engaging style Scandizzo covers the challenges and issues commonly faced by op risk professionals, such as measurement and reporting, policy, infrastructure, developing relationships with other groups within the bank, recruitment, training, control and mitigation of operational risk.

This new Executive Report builds on the coverage of the best-selling first edition, with expanded coverage and additional chapters that address:

* The impact of the crisis and the limitations of existing tools and techniques

* The increased importance of scenario analysis and stress testing

* The key role of operational risk in ensuring the integrity of the risk management process

* The importance of the new product approval process

* The pivotal role of the AMA approach

Written exclusively from the perspective of an operational risk manager, the focus of this Executive Report is always on describing practical ways to get the job done, backed up with real-life examples of everything that is discussed. It provides you with a solid understanding of the tools and techniques of identifying, managing, reporting and monitoring operational risk.

The Executive Report looks at current developments affecting the role of the op risk manager including new regulatory recommendations, validation of risk models, risk management oversight, capital measurement and allocation, and concluding with an assessment of how the op risk manager’s role is likely to evolve over the next 10 years.

This concise, practical Executive Report talks to practitioners in their own language with plenty of identifiable examples of day-to-day scenarios. This is essential reading not only for operational risk managers and analysts but also management consultants, internal and external auditors and compliance officers looking to move into this area or needing to learn more about the operational risk manager’s role.

More Information
ISBN 9781906348441
Navision code MOG2
Publication date 1 Aug 2010
Size 155mmx235mm
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Sergio Scandizzo

Sergio Scandizzo

Sergio Scandizzo is Head of Model Validation at the European Investment Bank in Luxembourg.  He is the author of The Operational Risk Manager’s Guide, now in its second edition, of Validation and Use Test in AMA, both published by Risk Books, and of The Validation of Risk Models, published by Palgrave MacMillan. He was also a contributing author to the award-winning Risk Books title Advanced Measurement Approach to Operational Risk, edited by Ellen Davis. Sergio is also Associate Editor of The Journal of Operational Risk and the author of several journal papers on fuzzy logic, genetic algorithms and risk management.

Prior to his position at the EIB he was a principal in the London office of PricewaterhouseCoopers and, prior to that, a senior manager in the Global Risk Advisory team at the Canadian Imperial Bank of Commerce in Toronto. He holds degrees in computer science and finance.

Foreword

Anthony Peccia

Citibank Canada

INTRODUCTION TO THE SECOND EDITION: THE MANAGEMENT OF RISK MANAGEMENT

The limits of risk governance

The difference between Prozac and Credit Default Swaps

The role of risk management

The failures of risk management

PROLOGUE: THE JOB INTERVIEW

PART I. THE JOB DESCRIPTION

1. A DAY IN THE LIFE

Key Risk Indicators

Meeting with Internal Audit

Briefing the CRO

Videoconference

Message from the supervisors

Study on third-party liability

Presentation

New product approval

2. THE OPERATIONAL RISK FUNCTION

Do I have to manage anything?

A place in the sun

Are you “adding value”?

Why manage operational risk?

Nobody expects the Spanish Inquisition

PART II. TOOLS OF THE TRADE: LIFE UNDER BASEL II

3. RISK MANAGEMENT FOR BEGINNERS: THE OPERATIONAL RISK POLICY

Definitions

Risk appetite

Roles and responsibilities

The operational risk management framework

4. RISK IDENTIFICATION

Objectives of risk identification

A methodology for risk identification and mapping

Case studies

Conclusions

5. RISK ASSESSMENT

Measurement and capital allocation

The Basel II approaches to operational risk measurement

The advanced measurement approaches

6. A MANUAL FOR SCENARIO ANALYSIS

The logic of Elfland

A story about what happened in the future

Scenario assessment

Ten suggestions for scenario building

Structure of a scenario database

Some examples

7. AMA: AN ADVANCED APPROACH TO RISK MEASUREMENT

Introduction

The lessons of Lehman Brothers

The mystery of risk measurement

AMA in action

A practical example

8. RISK MONITORING AND REPORTING

Reporting operational events and losses

Reporting results of self-assessment

Reporting Key Risk Indicators: the Operational Risk Scorecard

Reporting for top management

9. THE NEW PRODUCT APPROVAL PROCESS

Principles

Managing the product

Managing risks

Managing innovation and complexity

Sample New Product Approval Policy and Procedure

Troubleshooting: KRIs for the New Product Approval Process

Case study

PART III. SPECIAL TOPICS IN CALAMITY PHYSICS

10. THE MANAGEMENT OF EXTREME RISKS

The meaning of strategy

Risk definitions

High-severity events

Scenario analysis for extreme events

11. FINANCIAL AND OTHER DISASTERS

Three case studies

Thinking the unthinkable

EPILOGUE. OPERATIONAL RISK MANAGEMENT IN THE YEAR 2020