Operational Risk Control with Basel II: Basic Principles and Capital Requirements

Operational risk is present in every enterprise- The many types of operational risk Why management risk, legal risk, and information technology risk are the most important operational risks Other key operational risks to which senior management and the back office should pay attention Identification, monitoring, and measurement of operational risk A case study with operational risk in the insurance industry Addressing the top-most operational risk- A case study with operational risk in management Why deficient cost control is the best result of management risk Legal aspects of operational risk A case study on operational risks in information technology Establishing the basis of the scorecard approach- Analytical solutions to operational risk control Needed experimentation in understanding and gauging operational risk The scorecard approach suggested by the Basle committee High frequency low risk and low frequency high risk events Financial Reserves are not the only means of for facing operational risks- Capital reserves for operational risks Using insurance as an alternative to operational risk capital requirements