The new Basel Capital Accord has opened up a discussion concerning the measurement of operational risk for banks. In our paper we do not take a stand on the issue of whether or not a quantitatively measured risk capital charge for operational risk is desirable; however, given that such measurement will come about, we review some of the tools which may be useful towards the statistical analysis ...

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...

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...

This response has been put together by academics and in total independence of any corporate or individual interests. Our results are solely driven by scientific analysis and presented in the interest of the financial and business community, both the regulated entities and the regulators alike. The response addresses the Standardised Measurement Approach (SMA) proposed in the Basel Committee for...

Interrelationships and feedback loops between different enterprises in a supply chain are widely acknowledged to create additional challenges for risk identification and monitoring. However, each individual manufacturing enterprise is also characterized by interrelationships between its internal operational risks. Our paper investigates these internal interrelationships and provides insights in...

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...

Purpose of the work: within framework concept corporate risk management Enterprise Risk Management (ERM) to study basic types risks, assess their role in modern economy, analyze external and internal operational risks propose approaches quantitative assessment. As a research methodology, it is proposed use developed tools mathematical numerical modeling, which allows one obtain, key interest de...