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

Chorafas, Dimitris N.

Hardcover

ISBN 10: 0750659092 ISBN 13: 9780750659093

Publisher: Butterworth-Heinemann, 2003

Synopsis

Operational Risk Control with Basel II, provides a sound methodology for operational risk control and focuses on management risk and ways to avoid it. The book explains why and how information technology is a major operational risk and shows how to integrate cost control in the operational risk perspective. It aslo details analytical approaches to operational risk control, to help with scorecard developments, explains the distinction between High Frequency Low Risk and Low Frequency High Risk events and provides many case studeies from banking and insurance to demonstrate the attention operational risks deserve.

• Assists risk professionals in preparing their institution to comply with the New Capital Adequacy Framework issued by the Basel Committee on Banking Supervision, which becomes mandatory from January 1, 2006
• Readers benefit from a significantly broader viewpoint on types of operational risks, operational risks controls, and results to be expected from operational risk management - compared to what the reader may gain from books previously published on this same topic

About this title

About the Author

Since 1961, Dr Dimitris N. Chorafas has advised financial institutions and industrial corporations in strategic planning, risk management, computers and communications systems, and internal controls. A graduate of the University of California, Los Angeles, the University of Paris, and the Technical University of Athens, Dr Chorafas has been a Fulbright scholar. Financial institutions which have sought his assistance include the Union Bank of Switzerland, Bank Vontobel, CEDEL, the Bank of Scotland, Credit Agricole, Österreichische Länderbank (Bank Austria), First Austrian Bank, Commerzbank, Dresdner Bank, Mid-Med Bank, Demir Bank, Banca Nazionale dell'Agricoltura, Istituto Bancario Italiano, Credito Commerciale and Banca Provinciale Lombarda. Among multinational corporations Dr Chorafas has worked as consultant to top management, are: General Electric-Bull, Univac, Honeywell, Digital Equipment Corp, Olivetti, Nestlé, Omega, Italcementi, Italmobiliare, AEG-Telefunken, Olympia, Osram, Antar, Pechiney, the American Management Association and host of other client firms in Europe and the United States. Dr Chorafas has served on the faculty of the Catholic University of America and as visiting professor at Washington State University, George Washington University, University of Vermont, University of Florida, and Georgia Institute of Technology. Also, the University of Alberta, Ecole d'Etudes Industrielles de l'Université de Genève, and Technical University of Karlsruhe. More than 6,000 banking, industrial and government executives have participated in his seminars in the United States, England, Germany, other European countries, Asia and Latin America.

From the Back Cover

Until quite recently in the finance industry, operational risk has taken the back seat to credit risk and market risk. However, this is changing. Prompted by the New Capital Adequacy Framework, by the Basel Committee on Banking Supervision, which becomes mandatory from January 1, 2006, financial institutions are now busy in:* Identifying the many types of operational risks with which they are confronted.* Reviewing regulatory guidelines and best practices prevailing in the banking industry for operational risk control.* Aiming to help themselves develop solutions for an effective longer term operational risk management.This book addresses itself to commercial bankers, investment bankers, loans officers, traders, treasurers, backoffice managers, internal and external auditors, consultants, and regulators. It provides factual and documented evidence of how financial institutions define operational risk, how and why they go beyond the more classical operational risk reasons like fraud, and which measures they take for their management.Another major issue the book covers in detail is technical risk and operational risk in the insurance industry. Risk factors are identified and the use of insurance policies to mitigate operational risk is analyzed in a factual and document manner.

Excerpt. © Reprinted by permission. All rights reserved.

Prepare for the Basle Accord - manage your risk

Edition details

• Publisher: Butterworth-Heinemann
• Publication date: 2003
• Language: English
• ISBN 10: 0750659092
• ISBN 13: 9780750659093
• Binding: Hardcover
• Edition number: 1
• Number of pages: 400