Operational Risk Management in Financial Services

A Practical Guide to Establishing Effective Solutions

Edition: 1 Date: 03/07/2021 Price: £39.99 ISBN Paperback: 9781789667080 ISBN Ebook: 9781789667110 Pages: 384 Format (mm): 233x158 Product Category: Professional Subject: Risk Management

Author Information

Elena Pykhova is an operational risk executive specializing in strategy, design and implementation of firm-wide operational risk frameworks, based in London, UK. She is an experienced operational risk trainer, running public and in-house training courses in the UK and internationally for world-leading venues such as the London Stock Exchange Academy. She is founder of a think tank, Best Practice Operational Risk Forum, the Chair of the Operational Risk Expert Panel for the Association of Foreign Banks and the former Director for Education at the Institute of Operational Risk. « Inspires professionals to derive value out of operational risk management, rather than applying a compliance ‘tick box’ approach « Guides the reader on how to establish effective solutions and avoid common pitfalls with frameworks, examples and diagrams « Includes results from polls taken by risk practitioners which provide a snapshot of current practices and allow the reader to benchmark against other firms « Offers clear advice on conducting Risk and Control Self-Assessment, designing Key Risk Indicators and creating operational risk reports « Benefits from the author’s 25 years of experience as an operational risk executive and international trainer

Description

Technology failures, data loss, issues with providers of outsourced services, misconduct and mis-selling are just some of the top risks that keep financial firms up at night. In this context effective operational risk management is, simply, a commercial necessity.

The management of operational risk, defined by the Basel Accord as arising from failures of processes, people, systems or external events, has developed considerably since its early years. Continued regulatory focus and catastrophic industry events have led to operational risk becoming a crucial topic on senior management’s agenda. This book is a practical guide for practitioners which focuses on how to establish effective solutions and avoid common pitfalls.

Filled with frameworks, examples and diagrams, this book offers clear advice on key practices including conducting risk assessments, assessing change initiatives, designing key risk indicators, establishing scenario analysis, drafting appetite statements and carrying out risk reporting. Operational Risk Management in Financial Services also features results from polls taken by risk practitioners which provide a snapshot of current practices and allow the reader to benchmark themselves against other firms. This is the essential guide for professionals looking to derive value out of operational risk management, rather than applying a compliance ‘tick box’ approach.

Table of Contents

1 Operational risk - Definition and taxonomy 2 Operational risk framework and its implementation 3 The three lines of defence model - Its application to operational risk management 4 Operational risk events 5 Risk and control selfassessments 6 Operational risk assessment of change initiatives 7 Key risk indicators 8 Scenario analysis 9 Operational risk appetite 10 Operational risk reporting 11 Operational risk training and education 12 Risk culture 13 Embedding and maturity assessment 14 Operational resilience Appendix 1 Operational Risk

Champion - Role Description Appendix 2 Example operational risk event reporting template Appendix 3 ORA template Appendix 4 Table of 50 key risk indicators