Operational Risk Management : Best Practices in the Financial Services Industry.
- 1st ed.
- 1 online resource (272 pages)
- The Wiley Finance Series .
- The Wiley Finance Series .
Cover -- Title Page -- Copyright -- Contents -- About the Author -- Foreword -- Preface -- Introduction -- Part One Risk Identification -- Chapter 1 Risk Identification Tools -- Top-Down and Bottom-Up Risk Identification -- Exposure and Vulnerabilities -- The Risk Wheel -- The Root Causes of Damages and Revenues -- Process Mapping -- Interviews of Key Staff -- What Already Happened: Internal Losses, External Losses and Near Misses -- Chapter 2 Scenario Identification Process -- Scenario Preparation and Governance -- Scenario Generation and Selection -- Chapter 3 Risk Definition and Taxonomy -- Defining Risks -- Risk Management Taxonomy -- Chapter 4 Risk Connectivity and Risk Networks -- Managing Risks in Clusters -- Risk Connectivity to Prioritize Risk Management Attention -- Risk Connectivity Applied to Top Risk Survey -- Part Two Risk Assessment -- Chapter 5 Risk Appetite -- Context and Objectives -- Reward: The Missing Piece of Risk Appetite -- Risk Appetite Structure -- Top-Down and Bottom-up Approaches to Risk Appetite -- Tying Risk Appetite with the Rest of the Framework -- How Much is too Much? -- Chapter 6 Risk and Control Self-Assessments -- Structure and Objectives of RCSAs -- Impact and Likelihood Ratings and Assessments -- Combining Likelihood and Impact: The Heatmap -- Links with Other Parts of the Framework -- Chapter 7 Scenario Assessment -- Severity Assessment -- Frequency Assessment -- Range of Scenario Assessment Techniques -- Scenario Documentation and Validation -- Management Lessons from Scenario Analysis -- Chapter 8 Regulatory Capital and Modeling -- Regulatory Capital: Rationale and History in a Nutshell -- Pillar 1 - Regulatory Capital for Operational Risk -- Pillar 2 - Supervisory Review Process -- Stress Testing -- Wind-Down Planning -- Part Three Risk Mitigation -- Chapter 9 Operational Risk Governance. Risk Governance and the Role of the Board -- Three Lines of Defense Model -- Second Line: Between Guidance and Challenge -- Risk Committees and Organization -- Policies and Procedures -- Chapter 10 Risk Mitigation -- Definitions -- Types of Controls -- Control Testing -- Prevention Through Design -- Chapter 11 Root Cause Analysis and Action Plans -- Generalities and Good Practice -- Bow-tie Tool and Systemic Patterns of Failure -- Action Plan Design and Governance -- Chapter 12 Conduct and Culture -- Definitions -- How to Achieve Change -- Part Four Risk Monitoring -- Chapter 13 Incident Data Collection -- Importance of Loss Reporting and Regulatory Requirements -- Losses Versus Incidents and the Fallacy of Non-Financial Impacts -- Incident Data Collection Process -- Boundary Event Reporting -- Review and Validation -- Chapter 14 Key Risk Indicators -- Introduction -- Roles of Risk Indicators -- Key Indicators: Performance, Risks and Controls -- Ten Features of Leading KRIs -- Categories of KRIs -- KRI Design: Number, Thresholds and Governance -- Validation KRI Framework -- Summary: Framework for Preventive KRIs -- Chapter 15 Risk Reporting -- Golden Rules of Reporting -- Typical Content of Risk Reporting -- Risk Reporting Challenges -- Reporting on Conduct -- Addressing Asymmetry of Operational Loss Data -- Turning Data Into Stories -- Chapter 16 Valuable ORM -- How do you Know it Works? Criteria for a Mature Framework -- A Risk-Based Approach to ORM -- Deadly Sins and Golden Rules -- Demonstrating the Value of Risk Management -- Part Five Rising Operational Risks -- Chapter 17 Project Risk Management -- Context -- Stage of Involvement of the Risk Function in Project Management -- Risk Rating for Projects -- Project Risk Identification and Assessment -- Project Monitoring and Reporting -- Chapter 18 Information Security Risks -- Context. Data Breaches and Headline News -- Information Security Standards and Further References -- Identification: Risk Taxonomy for Information Security -- Assessment: Surveys, RCSAs and Scenarios -- Mitigation: Behavioral and Technical Measures -- Monitoring: KRIs -- Chapter 19 Operational Risks in Cryptocurrencies -- Context and Academic Research -- Summary -- Bitcoin -- Blockchain -- Risk Identification: Cryptocurrency Vulnerabilities and Exposures -- Operational Risks and Potential Event Types for Cryptocurrencies -- Mitigation Actions for Operational Risks in Cryptocurrencies -- Discussions on Operational Risk Drivers of Cryptocurrencies -- Chapter 20 Resilience and Reputation -- Introduction -- Reputation Management -- Crisis Management and Resilience -- Conclusion -- Rising Operational Risks -- The Future of Operational Risk Management -- Index -- EULA.