Authors: Hoffman, Hoffman
ISBN-13: 9780471412687, ISBN-10: 0471412686
Format: Hardcover
Publisher: Wiley, John & Sons, Incorporated
Date Published: January 2002
Edition: (Non-applicable)
DOUGLAS G. HOFFMAN is an independent consultant specializing in operational risk management. His firm, Operational Risk Advisors, assists financial institutions and corporate clients worldwide in operational risk assessment, analysis, and response, as well as in the design, development, enhancement, and review of risk capital models and risk finance and insurance programs. During his career as a Managing Director at Bankers Trust, and then as CEO of a Web-based technology firm, teams under his lead were credited as pioneers in developing some of the first operational risk-based capital models, databases, operational risk finance and insurance programs, and technology in the industry.
For today's financial institutions, Managing Operational Risk has the essential business tools to design optimal risk management programs and put your company well ahead of the curve in the face of anticipated new regulatory standards and capital requirements. This definitive book by an international expert covers every aspect of managing operational risk, including operational risk definitions, data collection, risk assessment, modeling, insurance, and risk finance, as well as a comprehensive introduction to information technology.
The complete evolution of operational risk management is covered here, including guidelines for setting objectives consistent with a corporate vision, educating management and staff on how to deal with operational risks, coordinating operational risk management functions, outlining various approaches to risk assessment and measurement, and examining techniques for responding to operational risk. This book supplements its descriptions by presenting varied approaches to each of the 20 featured strategies along with alternative tools and tactics for program development, so you can decide which management systems are best for your company. The author goes well beyond the usual downside-only perspective on operational risk management to explore the upside benefits of an effective enterprise-wide program. Each chapter is generously supplemented with cases that illustrate proven techniques, and cautions against techniques that have not been successful. In addition, financial considerations are addressed, including developing economic capital and regulatory models, insurance and risk finance, as well as risk-adjusted performance measures.
With a concluding synopsis of chapter highlights and lessons learned for easy skimming and quick reference, this is an essential resource for operational risk managers as well as CEOs and CFOs at investment and commercial banks, brokerages, insurance companies, mutual fund companies, and their e-business affiliates and subsidiaries.
Introduction | ||
Ch. 1 | Operational Risk Management 101: An Executive Summary | 1 |
Ch. 2 | The Best Practice Strategies | 18 |
Ch. 3 | What Is Operational Risk? | 28 |
Ch. 4 | The Real Opportunity: Creating More Effective Companies | 56 |
Ch. 5 | Operational Risk and Market Perception: Franchise, Reputation, and Brand Risk | 77 |
Ch. 6 | The Enterprise-wide Framework: Corporate Governance, Mandate, and Roles | 102 |
Ch. 7 | The Operational Risk Management Group | 134 |
Ch. 8 | Risk Response Framework and Strategies | 153 |
Ch. 9 | Risk Assessment Strategies | 181 |
Ch. 10 | Databases and Consortia: Working Through the Details | 213 |
Ch. 11 | Risk Indicators and Scorecards: Cornerstones for Operational Risk Monitoring | 238 |
Ch. 12 | Operational Risk Analysis and Measurement: Practical Building Blocks | 257 |
Ch. 13 | Dynamic Risk Profiling and Monitoring | 305 |
Ch. 14 | Insurance and Operational Risks: Aligning Conventional Programs | 331 |
Ch. 15 | Operational Risk Finance: The Re-engineering Process | 354 |
Ch. 16 | Economic Risk Capital Modeling: Allocation and Attribution | 375 |
Ch. 17 | Regulatory Capital and Supervision | 404 |
Ch. 18 | An Operational Risk Management Case Study: Managing Internet Banking Risk | 425 |
Ch. 19 | Operational Risk Technology and Systems | 448 |
Ch. 20 | The Game Plan and Action Steps | 475 |
Additional Readings | 487 | |
Operational Risk Management: Bibliography of Sources | 488 | |
Endnotes | 508 | |
Index | 525 |