金融風險--Chapter4 Operational Risk Management（PPT 59）

Chapter 4 Operational Risk Management
1. Introduction
2. OR Measurement
3. OR Management: Process and framework
4. OR Management: Mitigation techniques
5. Capital allocation and requirement
Introduction to Operational Risk Management
1.1 Importance of ORM
1.2 Definition
1.3 Typology
1.4 Types of loss
1.5 Major issues on ORM
1.6 Difficulties and Problems of ORM
1.1 Importance of operational risk management
Securitization, Deregulation, Globalization, Growing sophistication of financial instruments and technology
Examples:…..
See: BIS Sound practices for the management and supervision of operational risk, July 2002, P2

The survey of British Bankers’ Association and Coopers&Lybrand (1997) See Crouhy Book p477
1.2 Definition
There is still no complete consensus on a definition of OR.
Difficulties in defining and identifying
Example: credit loss case, it could result either from credit risk and failure of credit risk management, or from human error on the part of the loan officers, which is operational risk
Clear definition and typology is important to OR management and supervision
See Crouhy Book p475-476
Diversified industry definitions
Essential common: In the contest of a trading or financial institution, OR refers to a range of possible failures in the operations of the firm that are not related directly to market or credit risk.

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