Operational Risk Management (eBook)

ARIANE CHAPELLE, PHD, is Associate Professor (Honorary Reader) at University College London for the course 'Operational Risk Measurement for Financial Institutions' and is a Fellow of the Institute of Operational Risk and a trainer for the Professional Risk Managers' International Association (PRMIA), for whom she designed the Certificate of Learning and Practice in Advanced Operational Risk Management. She is a former holder of the Chair of International Finance at the University of Brussels. She has been active in operational risk management since 2000 and is a former head of operational risk management at ING Group and Lloyds Banking Group. Dr. Chapelle runs her own training and consulting practice in risk management. Her clients include Tier 1 financial organisations and international financial institutions.

About the Author xi

Foreword xiii

Preface xv

Introduction xix

PART ONE Risk Identification 1

CHAPTER 1 Risk Identification Tools 3

CHAPTER 2 Scenario Identification Process 13

CHAPTER 3 Risk Definition and Taxonomy 19

CHAPTER 4 Risk Connectivity and Risk Networks 29

PART TWO Risk Assessment 35

CHAPTER 5 Risk Appetite 37

CHAPTER 6 Risk and Control Self-Assessments 51

CHAPTER 7 Scenario Assessment 63

CHAPTER 8 Regulatory Capital and Modeling 77

PART THREE Risk Mitigation 93

CHAPTER 9 Operational Risk Governance 95

CHAPTER 10 Risk Mitigation 105

CHAPTER 11 Root Cause Analysis and Action Plans 115

CHAPTER 12 Conduct and Culture 119

PART FOUR Risk Monitoring 127

CHAPTER 13 Incident Data Collection 129

CHAPTER 14 Key Risk Indicators 141

CHAPTER 15 Risk Reporting 157

CHAPTER 16 Valuable ORM 171

PART FIVE Rising Operational Risks 179

CHAPTER 17 Project Risk Management 181

CHAPTER 18 Information Security Risks 193

CHAPTER 19 Operational Risks in Cryptocurrencies 207

CHAPTER 20 Resilience and Reputation 221

Conclusion 231

Index 235