Young / Coleman Operational Risk Assessment

The Commercial Imperative of a more Forensic and Transparent Approach
1. Auflage 2010
ISBN: 978-0-470-74599-1
Verlag: John Wiley & Sons
Format: PDF
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 456 Seiten, E-Book

Reihe: Wiley Finance Series

Operational risk assessment
The Commercial Imperative of a More Forensic and TransparentApproach
Brendon Young and Rodney Coleman
"Brendon Young and Rodney Coleman's book is extremelytimely. There has never been a greater need for the financialindustry to reassess the way it looks at risk. [...] They areright to draw attention to the current widespread practices of riskmanagement, which [...] have allowed risk to become underpricedacross the entire industry."
Rt Hon John McFall MP, Chairman,
House of Commons Treasury Committee
Failure of the financial services sector to properly understandrisk was clearly demonstrated by the recent 'credit crunch'. In its2008 Global Stability Report, the IMF sharply criticised banks andother financial institutions for the failure of risk managementsystems, resulting in excessive risk-taking. Financial sectorsupervision and regulation was also criticised for lagging behindshifts in business models and rapid innovation.
This book provides investors with a sound understanding ofthe approaches used to assess the standing of firms and determinetheir true potential (identifying probable losers and potentiallonger-term winners). It advocates a 'more forensic' approachtowards operational risk management and promotes transparency,which is seen as a facilitator of competition and efficiency aswell as being a barrier to fraud, corruption and financialcrime.
Risk assessment is an integral part of informed decision making,influencing strategic positioning and direction. It is fundamentalto a company's performance and a key differentiator betweencompeting management teams. Increasing complexity is resulting inthe need for more dynamic, responsive approaches to the assessmentand management of risk. Not all risks can be quantified; however,it remains incumbent upon management to determine the impact ofpossible risk-events on financial statements and to indicate thelevel of variation in projected figures.
To begin, the book looks at traditional methods of riskassessment and shows how these have developed into the approachescurrently being used. It then goes on to consider the more advancedforensic techniques being developed, which will undoubtedlyincrease understanding. The authors identify 'best practice' andaddress issues such as the importance of corporate governance,culture and ethics. Insurance as a mitigant for operational risk isalso considered. Quantitative and qualitative risk assessmentmethodologies covered include: Loss-data analysis; extreme valuetheory; causal analysis including Bayesian Belief Networks; controlrisk self-assessment and key indicators; scenario analysis; anddynamic financial analysis.
Views of industry insiders, from organisations such as Standard& Poors, Fitch, Hermes, USS, UN-PRI, Deutsche Bank, and AlchemyPartners, are presented together with those from experts at theFSA, the International Accounting Standards Board (IASB), and theFinancial Reporting Council.
In addition to investors, this book will be of interest toactuaries, rating agencies, regulators and legislators, as well asto the directors and risk managers of financial institutions inboth the private and public sectors. Students requiring acomprehensive knowledge of operational risk management will alsofind the book of considerable value.

Autoren/Hrsg.

Young, Brendon

Coleman, Rodney

Über Autor(innen)

BRENDON YOUNG is recognized internationally as a leadingexpert in risk management. He is chairman of the Operational RiskResearch Forum and founding president of the Institute ofOperational Risk. He has been an advisor to prominent financialinstitutions including Moody's and the Financial ReportingCouncil Board of Actuarial Standards. He has published papers andlectured widely, giving presentations at the FSA, the Bank ofEngland, BaFin, the Dutch National Bank, the OCC, and the New YorkState Banking Department. Previously, he was director of ArthurAndersen's risk research centre. In academia he was businessschool associate dean, responsible for risk research and businessdevelopment. His early career was in consultancy with Deloitte andlater in venture capital. Initially he trained in industry withRolls-Royce aero-engines and Jaguar Cars, qualifying both as achartered engineer and a chartered management accountant.
RODNEY COLEMAN, until recently, was a senior lecturer inmathematics at Imperial College London, specialising in statisticsand quantitative finance. He has given presentations widely on lossdata analysis, in Europe, Canada and the United States and Korea.He has been involved with operational risk research for more than12 years, and is a founding fellow of the Institute of OperationalRisk and an Associate Editor of the Journal of OperationalRisk. He was an author of the first published academic paper onapplying statistical methods to model loss data for quantifyingoperational risk. He has been closely associated with theOperational Risk Research Forum since its beginnings, and addressedits meetings at BaFin and the New York State Banking Department. Hehas given presentations at the Dutch National Bank, the OpriskEurope Conference, the Institute of Actuaries Actuarial Teachingand Research Conference, the Actuarial Studies in Non-LifeInsurance UK meeting, and widely including universities in Canada,Italy and Korea. He is a fellow of the Royal Statistical Societyand a member of the International Statistical Institute.