Operational Risk Management in Financial Services: A Practical Guide to Establishing Effective Solutions

  • 5h 25m
  • Elena Pykhova
  • Kogan Page
  • 2021

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.

In this Book

  • Operational Risk: Definition and Taxonomy
  • Operational Risk Framework and its Implementation
  • The Three Lines of Defence Model: Its Application to Operational Risk Management
  • Operational Risk Events
  • Risk and Control Self-Assessments
  • Operational Risk Assessment of Change Initiatives
  • Key Risk Indicators
  • Scenario Analysis
  • Operational Risk Appetite
  • Operational Risk Reporting
  • Operational Risk Training and Education
  • Risk Culture
  • Embedding and Maturity Assessment
  • Operational Resilience


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