In Reflections on Operational Risk Management, industry expert Ariane Chapelle, provides a thorough treatment of the current state of op risk management in finance. For the first time, 28 of her most important articles are combined and organised so as to guide the reader through the key topics and areas.
Divided into six sections the author examines and offers her thoughts on: The Essentials of Operational Risk and Risk Management Framework, Risk Appetite and Risk Decisions, Key Risk Indicators and Reporting, Culture and Conduct, Scenario Analysis and Tail Risks and Regulation & Capital.
The operational risk discipline is still in its infancy in the financial services industry and that is what makes it fascinating. New methods arise every day and practice is constantly evolving; this bite-size book arms the reader with a variety of topics, analogies, suggestions and ideas to stimulate awareness and understanding of operational risk in the financial industry and beyond.
This book by Ariane Chapelle is a collection of 28 columns and articles, spanning more than five years. From the fundamentals of operational risk frameworks to risk capital, they are regrouped around six themes including risk appetite, key risk indicators, risk reporting and risk culture. Each chapter addresses a hot topic of the time, such as rogue trading, or topics that are still very much discussed today, such as key risks indicators and conduct risk. More recent issues like the SMA reform and the role of regulatory capital are also explored.
The book is essential reading for op risk managers and anybody with an interest in the field.
|Publication date||30 Jun 2017|
About the Author
About the Co-Authors
PART 1: Essentials of Operational Risk and Risk Management Framework
1 Operational Risk in Four Letters
2 An Invisible Framework
Ariane Chapelle and Michael Sicsic
3 Small is Beautiful in OpRisk Management
4 The Business Value of ORM
5 How to Minimise ‘People Risk’
PART 2: Risk Appetite and Risk Decisions
6 The Missing Piece
7 Risk Appetite and Framework
8 From Russian Roulette to Overcautious Decision-making
PART 3: Key Risk Indicators and Reporting
9 The Importance of Preventive KRIs
10 How to Build Preventive Key Risk Indicators
11 Unlocking KRIs
12 Six Steps for Preventive KRIs
13 Have Your Cake and Eat It
PART 4: Culture and Conduct
14 Conduct, Not ‘Conduct Risk’
15 How to Manage Incentives
16 Is Reputation Risk Overstated?
17 What Regulators Want
18 Conduct & Culture
Ariane Chapelle, Jimi Hinchliffe and Mark Laycock
PART 5: Scenario Analysis and Tail Risks
19 Op Risk Takes Forward Steps at OpRisk Europe 2014
20 Modern Scenario Analysis
21 The Rogue’s Path
22 Rogue Trading No Training: The Connections
23 What Brexit Teaches OpRisk
24 OpRisk Survey Shows the Insidious Effects of Political
PART 6: Operational Risk Capital and Measurement
25 Discarding the AMA Could Become a Source of OpRisk
Ariane Chapelle, Bertrand Hassani, Gareth W. Peters, Evan Sekeris and Pavel Shevchenko
26 UCL Research Shows that SMA Reforms Introduces Capital Instability and Discourages Risk Management
Ariane Chapelle, Bertrand Hassani, Gareth W. Peters and
27 Memo to Bank CEOs: Treat OpRisk with More Respect
Ariane Chapelle and Evan Sekeris
28 Don’t Let the SMA Kill OpRisk Modelling
Ariane Chapelle and Evan Sekeris