TABLE OF CONTENTS Risk managers, CEOS and treasury executives across the world are concluding that the management of operational risk delivers substantial benefits to a company's bottom line and shareholder value. Unfortunately this link is still often underestimated, resulting in substantial reputation damage and/or financial loss.
If market and credit risk were the buzz phrases of the 1990s, operational risk is definitely the topic of this decade. One only has to look at the priorities of industry regulators and the increasing presence within treasury of operational risk resources to understand the attention this issue is attracting.
For example, in the UK, the British Bankers' Association (BBA) has published a discussion paper on operational risk, designed to lay the groundwork for further debate on industry operational risk management practices and the development of regulatory policy. The Association is also working on a database of operational risk incidents, ...
