Part I Operational Risk and Its Management
Chapter 1, Operational Risks in Financial Organizations.............................. 1
Chapter 2, Main Aspects of Operational Risk Management ......................... 1
1
Operational Risks in Financial Organizations .......................... 3
Introduction ....................................................................................................... 3
Operational Risks in Financial Organizations................................................. 7
Defining Operational Risks ......................................................................... 8
Existence of Operational Risks in Financial Organizations.................... 10
1. Organization ...................................................................................... 12
2. Processes and Policies...................................................................... 13
3. Systems and Technology.................................................................. 13
4. People................................................................................................ 14
5. External Events ................................................................................. 15
Interactions between Operational Risks................................................... 17
Characteristics of Operational Risks .............................................................. 18
Operational Risk Event Types ....................................................................... 21
Employee Risks in Banking Organizations................................................... 26
Operational Risks and IT ............................................................................... 31
IT Security................................................................................................... 36
Summary .......................................................................................................... 39
References........................................................................................................ 40
2
Main Aspects of Operational Risk Management ..................... 43
Introduction ..................................................................................................... 43
Main Aspects of Operational Risk Management .......................................... 45
Operational Risk Management Best Practices ......................................... 48