Operational Risks in Financial Sectors

Operational Risks in Financial Sectors

A new risk was born in the mid-1990s known as operational risk. Though its application varied by institutions—Basel II for banks and Solvency II for insurance companies—the idea stays the same. Firms are interested in operational risk because exposure can be fatal. Hence, it has become one of the major risks of the financial sector. In this study, we are going to define operational risk in addi...

Operational risks in financial sectors

A new risk was born in the mid-1990s known as operational risk. Though its application varied by institutions Basel II for banks and Solvency 2 for insurances the idea stays the same. Firms are interested in operational risk because exposure can be fatal. Hence it has become one of the major risks of the financial sector. In this study, we are going to define operational risk in addition to its...

Financial Intermediation, Markets, and Alternative Financial Sectors

We provide a comprehensive review of firms’ financing channels (internal and external, domestic and international) around the globe, with the focus on alternative finance—financing from all the nonmarket, non-bank external sources. We argue that while traditional financing channels, including financial markets and banks, provide significant sources of funds for firms in developed countries, alt...

A Literature Review on Operational IT Risks and Regulations of Institutions in the Financial Service Sector

In the last decade public authorities have put many global and local regulations for financial institutions into practice. Several of these regulations concern operational IT risks of financial institutions. For financial institutions using the Advanced Measurement Approach operational risk is important to calculate their minimum capital requirements. The objective of this paper is to provide a...

Financial Risks: Cases Of Non-Financial Enterprises