Operational Risk Control with Basel II

Since 1961, Dr Dimitris N. Chorafas has advised financial institutions and industrial corporations in strategic planning, risk management, computers and communications systems, and internal controls. A graduate of the University of California, Los Angeles, the University of Paris, and the Technical University of Athens, Dr Chorafas has been a Fulbright scholar. Financial institutions which have sought his assistance include the Union Bank of Switzerland, Bank Vontobel, CEDEL, the Bank of Scotland, Credit Agricole, Österreichische Länderbank (Bank Austria), First Austrian Bank, Commerzbank, Dresdner Bank, Mid-Med Bank, Demir Bank, Banca Nazionale dell'Agricoltura, Istituto Bancario Italiano, Credito Commerciale and Banca Provinciale Lombarda. Among multinational corporations Dr Chorafas has worked as consultant to top management, are: General Electric-Bull, Univac, Honeywell, Digital Equipment Corp, Olivetti, Nestlé, Omega, Italcementi, Italmobiliare, AEG-Telefunken, Olympia, Osram, Antar, Pechiney, the American Management Association and host of other client firms in Europe and the United States. Dr Chorafas has served on the faculty of the Catholic University of America and as visiting professor at Washington State University, George Washington University, University of Vermont, University of Florida, and Georgia Institute of Technology. Also, the University of Alberta, Ecole d'Etudes Industrielles de l'Université de Genève, and Technical University of Karlsruhe. More than 6,000 banking, industrial and government executives have participated in his seminars in the United States, England, Germany, other European countries, Asia and Latin America.

Operational risk is present in every enterprise- The many types of operational riskWhy management risk, legal risk, and information technology risk are the most important operational risksOther key operational risks to which senior management and the back office should pay attentionIdentification, monitoring, and measurement of operational riskA case study with operational risk in the insurance industryAddressing the top-most operational risk- A case study with operational risk in managementWhy deficient cost control is the best result of management riskLegal aspects of operational riskA case study on operational risks in information technologyEstablishing the basis of the scorecard approach- Analytical solutions to operational risk controlNeeded experimentation in understanding and gauging operational riskThe scorecard approach suggested by the Basle committeeHigh frequency low risk and low frequency high risk eventsFinancial Reserves are not the only means of for facing operational risks- Capital reserves for operational risksUsing insurance as an alternative to operational risk capital requirements