Op risk professionals must revisit their attitude to qualitative data. John Kiddy, CEO of Chase Cooper, says we must stop thinking of it as ‘just’ qualitative data and view it as a precious source of intellectual capital. Most operational risk
The standard model in Solvency II is totally inadequate for operational risk. Many in the industry know this. But nothing is likely to change before 2012. “How to treat operational risk has been a very important question from the start
“That men do not learn very much from the lessons of history is the most important of all the lessons that history has to teach.” – Aldous Huxley It is to be hoped that by now, every financial institution that
Governance, risk and compliance as a concept now permeates the risk management airwaves in the same way that enterprise risk management did three years ago. Most risk management software vendors are trampling over each other to be the first to
The unprecedented and catastrophic failure in risk management by industry participants, regulators and governments over the past 18 months has put the spotlight on the way that banks handle risks and their governance and compliance capabilities. It must also lead
Six Sigma is in essence a structured methodology to systematically improve processes by eliminating defects. The ideas and practices came out of manufacturing in the mid-1980s and have been reported as having generated many billions of dollars in shareholder value.
Regulators first started talking about “other risks” in the 1990s after events such as Barings, BCCI and Sumitomo highlighted the fact that financial securities institutions are subjected to risks other than market risk and credit risk. Over several years of