Publisher Description

Threats to an organization's operations, such as fraud, IT disruption or poorly designed products, could result in serious losses. Understand the key components of effective operational risk management with this essential book for risk professionals and students.

Fundamentals of Operational Risk Management outlines how to implement a sound operational risk management framework which is embedded in day-to-day business activities. It covers the main operational risk tools including categorisation, risk and control self-assessment and scenario analysis, and explores the importance of risk appetite and tolerance.

With case studies of major operational risk events to illustrate each concept, this book demonstrates the value of ORM and how it fits with other types of risk management. There is also guidance on the regulatory treatment of operational risk and the importance of risk culture in any organization. Master the essentials and improve the practice of operational risk management with this comprehensive guide.

Table of Contents

• • Chapter - 01: Understanding operational risk - Key concepts and management objectives;
  • Chapter - 02: Embedding operational risk management;
  • Chapter - 03: Categorizing operational risks;
  • Chapter - 04: Risk culture;
  • Chapter - 05: Risk appetite;
  • Chapter - 06: Operational risk governance;
  • Chapter - 07: Risk and control self-assessments;
  • Chapter - 08: Operational loss events;
  • Chapter - 09: Operational risk indicators;
  • Chapter - 10: Scenario analysis and stress testing;
  • Chapter - 11: Organizational resilience;
  • Chapter - 12: Regulating operational risk

Review

"Simon Ashby is very well placed through his long association with the Institute of Operational Risk to write what will prove to be the definitive book on operational risk. He challenges us to expand our understanding of operational risk to encompass 'unpredictable outcomes of the efficiency and effectiveness of operations.' Using a series of compelling case studies, he brings the subject alive. It is sobering to see how many of the selected case studies had underlying cultural drivers. I found the section on risk culture particularly practical in its insights to monitoring and taking action. The approach to operational risk event data establishes the benefits of learning from past events and ensuring recurrence is prevented, which surely is the essence of any robust approach to operational risk." * Alex Hindson, Chief Risk & Sustainability Officer, Argo Group *
"This is an excellent book, serving as an effective pragmatic tool for risk practitioners working in all three lines across the world, as well as a good guide for the academics in operational risk." * Dominic Wu, Director, Risk Management BCT Group *
"Simon Ashby presents a very well structured, research-based and informative guide to operational risk management. This excellent book covers every key topic, from embedding risk culture to conducting scenario analysis. A remarkably rewarding source for practitioners." * Elena Pykhova, Director and Founder, The OpRisk Company *
"It is becoming more and more clear that operational risk models are of limited use, while taking behavioural elements into account in risk culture, governance etc. is of tremendous importance. This book sets absolutely the right focus - and numerous case studies confirm that Simon is not just a seasoned academic, but very familiar with the important details of practical implementation as well. Really worthwhile reading!" * Prof. Dr. Thomas Kaiser, Professor Kaiser Risk Management Consulting & Goethe University *

Review Quote

"This is an excellent book, serving as an effective pragmatic tool for risk practitioners working in all three lines across the world, as well as a good guide for the academics in operational risk."

Promotional "Headline"

Explains the key components of an operational risk management framework and supporting governance structures

Feature

* Explains the key components of an operational risk management framework and supporting governance structures; * Includes case studies of major operational risk events to illustrate key concepts, covering rogue traders, fraud and technology issues; * Covers operational risk tools including categorisation, risk and control self-assessment, scenario analysis, events and losses and operational risk indicators; * Explores the regulatory treatment of operational risk and how to create an effective risk culture; * Examines where operational risk fits in relation to other risk types and how this can create challenges

Details