Operational Risk Management in Financial Services and the New Basel Accord

16 Pages Posted: 22 Aug 2004

Date Written: February 2003


Today's turbulent financial markets, growing regulatory environments, and increasingly complex financial systems have led risk managers to realize the importance of measuring and managing Operational Risk. According to the Basle Committee on Banking Supervision, Operational Risk is the risk of direct or indirect loss resulting from inadequate or failed internal processes, people, and systems or from external events. Infrastructure failures (e.g., information technology, terrorist attacks), fraud (e.g., rogue trading), legal and regulatory risks (e.g., fines), have become the motivators behind the move to proactively manage Operational Risk in large Financial Services Institutions. In this paper we provide an up to date critical review of the most fundamental issues on Operational Risk Management, e.g., methodology, data collection, analytics, implementation, based on our practical experience.

Keywords: Risk Management, Operational Risk, Basel

JEL Classification: G21, C44, E58, G18

Suggested Citation

Harmantzis, Fotios, Operational Risk Management in Financial Services and the New Basel Accord (February 2003). Available at SSRN: https://ssrn.com/abstract=579321 or http://dx.doi.org/10.2139/ssrn.579321

Fotios Harmantzis (Contact Author)

FX Concepts

New York, NY 10122

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics