Interesting Reading
Causal Taxonomy: Cause Célèbre
Publication date: June 2009
Publication: OpRisk & Compliance, June 2009, Volume 10 Issue 7
Author: Rick Cech, RiskBusiness International Limited
Causal taxonomy was around in op risk's beginnings but was put aside as the discipline evolved. Now the re-evaluation of op risk prompted by the financial crisis has pushed causal analytics back up the agenda. Rich Cech proposes a potential future role
Scenario Analysis - Which Way Now?
Publication date: April 2009
Publication: OpRisk & Compliance
Author: Tara McLenaghen
Tara McLenaghen discusses how scenario analysis can be used to address some of the risk management failures highlighted by the financial crisis.
KRI Forum 2009 - How the Marriage of External Events and KRIs Can Deliver Extraordinary Value
Publication date: April 22nd 2009
Publication: KRI Forum 2009 - GCOR III
Author: Penny Cagan, Tara McLenaghen
KRI Forum 2009 - Measuring Risk Using KRIs in a Transaction Flow Business
Publication date: April 22nd 2009
Publication: KRI Forum April 2009 - GCOR III
Author: Leslie Wims Morris
KRI Forum 2009 - The (Re-)Emergence of Cause as a Core Theme in Operational Risk
Publication date: April 22nd 2009
Publication: KRI Forum, GCOR III
Author: Carole Carpentier, Rick Cech
KRI Forum 2009 - Building New Standards for the Middle Office
Publication date: April 22nd 2009
Publication: KRI Forum April 2009 - GCOR III
Author: Middle Office Solutions
The 18 best KRIs for retail lending
Publication date: February 2008
Publication: RMA Journal
Author: Tara McLenaghen
The RMA’s Retail Banking KRI Working Group, facilitated and guided by Risk
Business
' Tara McLenaghen, has been teleconferencing monthly with the goal of developing a list of the most valuable key risk indicators for retail’s different risk areas. Participants have found these discussions an excellent way to validate their own KRIs against those of peer institutions. Now, after much research and brainstorming, the group has identified “the 18 best KRIs for retail lending”, as described in this article by Tara.
Chief risk officers at crunch time: Compliance champions or business partners?
Publication date: December 2008
Publication: Journal of Risk Management in Financial Institutions, Vol 2.1
Author: Anette Mikes, Professor of Risk Mangement, Harvard Business School
New regulatory requirements have raised the bar on compliance and significantly expanded the remit of risk management departments in financial institutions. The compliance imperative requires banks to implement a firm-wide risk management framework complete with analytical models for the measurement and control of quantifiable risks. In addition, recent corporate governance guidelines advocate the 'business partner' role of risk management, considering it a high-level strategic activity, contributing to board-level decisions, planning and performance management. Anette Mikes from Harvard Business School, debates the age old issue as to whether risk executives are considered Compliance Champions or Business Partners?
CBA KRI Services Case Study
Publication date: 30 April 2008
Publication: www.KRIeX.org
Author: RMA
Commonwealth Bank of Australia - Kudos to KRI Library Services. The KRI Library has been used broadly across CBA, from training sessions on the purpose and uses of KRIs through to the work shopping of ideas for new KRIs across the Group.
Identifying and Selecting the Right Risk Consultant
Publication date: 16 February 2007
Publication: Forrester Research
Author: Michael Rasmussen
Business today is dynamic and complex, which is causing organizations to consider more formalized processes for enterprise risk management. The goal is to effectively mitigate or avoid damage to the organization while seizing the maximum return on opportunities. To effectively manage risk, organizations turn to risk consultants for advice. This research publications provides information on the kinds of consultants in the risk area.
A change of scene
Publication date: December 2007/January 2008
Publication: Asia Risk
Author: Duncan Woods
Scenario analysis is often used to plug the gaps that conventional data can't fill
when dealing with the tail of loss distributions. But it might have more to offer.
US bank regulators reach agreement on the implementation of the Basel II capital rules
Publication date: 21 July 2007
Publication: The Financial Times
Author: David Wighton
US bank regulators finally reached agreement on Friday on the implementation of the Basel II capital rules, which will bring the regime for large US banks more in line with that already adopted in Europe.
The agreement, which could significantly reduce the amount of capital large banks would be required to hold, ends years of wrangling among the four US regulators that has infuriated large banks and alarmed politicians in the US and exasperated banks and regulators in Europe.
This article can be found
here
,
also,
Federal Reserve press release
Life Insurers: Caught Betweena Rock and a Hard Place
Publication date: November/December 2005
Publication: GARP Risk Review
Author: Peter Kandl
How has the risk landscape recently changed in the European life insurance industry? What are the biggest
risk management challenges facing insurers? And how has the development of Solvency II and other
regulatory frameworks affected insurers? Dr. Peter Kandl examines the evolution of risk management
principles and practices in the European insurance community.
The data puddle challenge
Publication date: August 2007
Publication: Oprisk & Compliance
Author: Tara McLenaghen
The loss event taxonomies currently in use are inadequate. The worst problem is the lack of clarity with regard to the boundary conditions between risk event categories. Tara McLenaghen explores the issues.
Event Horizon (Portuguese) - "Eventos Tipo"
Publication date: February 2007
Publication: OpRisk and Compliance
Author: Rick Cech, RiskBusiness
A Portuguese translation of an article on event types, event horizons and the need for a clear and concise data classification taxonomy.
Event Horizon
Publication date: February 2007
Publication: Op Risk and Compliance
Author: Rick Cech, RiskBusiness
Rick Cech takes a second look at what makes up operational risk event types, and asks if there is a more advanced way to define them.
Proposed Product Reclassification for the KRI Framework
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KRI Services Team 2006 Achievements
Publication date: January 2007
Publication: KRIeX
Author: Leslie Mitchell
As we look back over 2006, two themes emerge from KRI Services activities. Our efforts revolved around enhancing programs and on expanding product reach for both Library and Benchmarking Services.
Summary of Discussions of the
Publication date: June 2006
Publication: BoJ Report
Author: Bank of Japan
A report on a series of discussions hosted by the Bank of Japan amongst leading Japanese financial institutions on different approaches and benefits to managing operationa risk.
The Trouble With KRIs
Publication date: May 2006
Publication: Oprisk & Compliance
Author: Dianne See Morrison
KRIs are often considered hard to deal with, but op risk managers aren't dismissing them just yet.
Composite Indicators: Reporting KRIs to Senior Management
Publication date: April 2006
Publication: RMA Journal
Author: Charles Taylor
Figuring out what—and how much—information to report to senior management is a tough problem. Trying to relate disparate types of information—combining apples and oranges—makes it even worse. This article discusses a solution: composite indicators. The author explains the concept with plain words, illustrative graphics, and the occasional equation.
Industry Sound Practices for Financial and Accounting Controls at Financial Institutions
Publication date: April 2006
Publication: RMA Journal
Author: John E. Tschirhart and Roseanne T. Farley
After a two-year review of financial and accounting controls at a number of large, complex banking institutions, the Federal Reserve Bank of New York identified 11 sound practices that may be useful to institutions seeking to enhance their financial control environment.
Composite Indicators:Reporting KRIs to Senior Management
Publication date: April 2006
Publication: RMA Journal
Author: Charles Taylor
Figuring out what—and how much—information to report to senior management is a tough problem. Trying to relate disparate types of information—combining apples and oranges—makes it even worse. While much has been written on the problem, this article talks about a solution: composite indicators. The author explains the concept with plain words, illustrative graphics, and the occasional equation.
KRI Services Update 2006
Publication date: January 2006
Publication: KRIeX
Author: Leslie Mitchell
As 2006 begins, we’d like to summarize our plans for KRI Library and Benchmarking Services. This letter incorporates and adds to our November 2005 KRI Services Newsletter which is available online at www.KRIeX.org and provides valuable information on subscription renewals, working groups, risk mapping and more.
Implementing Composite Indicators
Publication date: January 2006
Publication: KRIeX
Author: Charles Taylor
The presentation and related tool, initially provided to participants in the January 2006 KRI Conference, is available to all KRI Subscribers. Click on the link(s) below and learn more about:
* extracting value from your operational risk database
* identifying factors that compound one another's impact on risk
* combining data to produce more insightful analysis
* generating sophisticated, cross-enterprise reports for senior management
New York Scenario Workshop Synopsis
Publication date: 28 October 2005
Publication: RiskBusiness Workshop Synopsis
Author: Tara McLenaghen, RiskBusiness
A synopsis of discussion at the recent scenario workshop hosted by Risk
Business
in New York
Scenario Presentation from JP Morgan Chase & Co
Publication date: October 2005
Publication: RiskBusiness Workshop
Author: Robin Phillips, JP Morgan Chase & Co
A copy of a presentation by Robin Phillips of JP Morgan Chase at the New York Risk
Business
Scenario Workshop
Scenario Presentation from Man Group
Publication date: October 2005
Publication: RiskBusiness Workshop
Author: Jonathan Howitt, Man Group
A copy of a presentation by Jonathan Howitt of Man Group at the New York Risk
Business
Scenario Workshop
Scenario Presentation from AXA UK
Publication date: October 2005
Publication: RiskBusiness Workshop Synopsis
Author: James Ryan, AXA UK
A copy of a presentation by James Ryan of AXA UK at the Risk
Business
Scenario Workshops in both London and New York.
Scenario Presentation from Risk
Business
Publication date: October 2005
Publication: RiskBusiness Workshop Synopsis
Author: Jonathan Davies, RiskBusiness
A copy of a presentation by Jonathan Davies of Risk
Business
at the Risk
Business
Scenario Workshops in London and New York.
Corporate Governance Discussion Paper Response
Publication date: 17 October 2005
Publication: RiskBusiness Document
Author: Mike Finlay
A response by Risk
Business
to the Consultative Document Enhancing Corporate Governance for Banking Organisations issued by the Bank for International Settlements for industry comment
KRI Survey Report
Please login for more details.
Scenario analysis: the way forward
Publication date: September 2005
Publication: Operational Risk
Author: Duncan Wood, Operational Risk
An article looking at how scenario analysis is only recently becoming seen as an important input for Basel II AMA
Next Stop - Benchmarking
Publication date: September 2005
Publication: Global Risk Regulator
Author: Editorial
An article examining the potential for benchmarking KRIs, following the publication of the KRI Banking Study report.
Next Stop - Benchmarking
Publication date: September 2005
Publication: Global Risk Regulator
Author: Editorial
An article examining the potential for benchmarking KRIs, following on from the publication of the KRI Banking Study report.
Putting KRIs into Context
Publication date: July 2005
Publication: RiskBusiness Briefing
Author: Mike Finlay, RiskBusiness
This article explores the inter-relationships between the various forms of operational risk management tools, using the analogy of a long journey to fit each tool or approach into its relevant context from a management perspective.
Scenario Analysis Workstream from Risk
Business
Publication date: August 2005
Publication: Operational Risk
Author: Editorial
A report on the recent scenario analysis workshop hosted by Risk
Business
in London.
Is There only 1 Unexpected Loss?
Publication date: August 2005
Publication: RMA Journal
Author: Jonathan Davies
Before we can manage operational risk effectively, we need to know the right questions to ask. Besides the need to identify the specific risk exposure, we must determine 1) whether we’re talking about residual or inherent risk; 2) the contributing elements; and 3) the required confidence level and time horizon. It is the third point, often overlooked, that is the focus of this article.
KRIs In Context
Publication date: August 2005
Publication: RiskBusiness
Author: Mike Finlay
Operational Risk Management – A Long Journey. Putting the use of KRIs into context against other operational risk tools…
Scenario Presentation from CSFB
Publication date: July 2005
Publication: RiskBusiness Workshop Synopsis
Author: James Elder, CSFB
A copy of a presentation by James Elder of CSFB at the Risk
Business
Scenario Workshop in London.
Scenario Presentation from Man Group
Publication date: July 2005
Publication: RiskBusiness Workshop Synopsis
Author: Jonathan Howitt, Man Group
A copy of a presentation by Jonathan Howitt of Man Group at the Risk
Business
Scenario Workshop in London.
London Scenario Workshop Synopsis
Publication date: July 2005
Publication: RiskBusiness Workshop Synopsis
Author: Editorial
A synopsis of discussion at the recent scenario workshop hosted by Risk
Business
in London
KRI Banking Study Report
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KRIs under scrutiny at OpRisk Europe conference
Publication date: April 2005
Publication: Operational Risk
Author: Editorial
Article describes some of the issues around KRIs discussed at the OpRisk Europe conference.
KRIs under scrutiny at OpRisk Europe conference
Publication date: April 2005
Publication: Operational Risk
Author: Editorial
Article describes some of the issues around KRIs discussed at the OpRisk Europe conference.
Op Risk Management and Basel II
Publication date: March 2005
Publication: @IBBM
Author: Hansruedi Schütter
Exploring the apparent different angles presented by Basel II capital adequacy requirements and the need to managed operational risks to minimize losses, including the role of KRIs
Op Risk Management and Basel II
Publication date: March 2005
Publication: @IBBM
Author: Hansruedi Schütter
Exploring the apparent different angles presented by Basel II capital adequacy requirements and the need to managed operational risks to minimize losses, including the role of KRIs
KRIs: the op risk early warning system
Publication date: January 2005
Publication: Operational Risk
Author: Duncan Wood, Operational Risk
Although there are a few obstacles to overcome before key risk indicators finally gain full industry acceptance, interest in KRIs is only set to rise.
Progress report due on KRI project
Publication date: January 2005
Publication: Operational Risk
Author: Editorial
The co-ordinators of the industry’s Key Risk Indicator (KRI) project were preparing to give a progress report to participants at a conference in New
York as Operational Risk magazine went to press.
Progress report due on KRI project
Publication date: January 2005
Publication: Operational Risk
Author: Editorial
The co-ordinators of the industry’s Key Risk Indicator (KRI) project were preparing to give a progress report to participants at a conference in New
York as Operational Risk magazine went to press.
KRIs: the op risk early warning system
Publication date: January 2005
Publication: Operational Risk
Author: Duncan Wood, Operational Risk
Although there are a few obstacles to overcome before key risk indicators finally gain full industry acceptance, interest in KRIs is only set to rise.
Key Risk Indicators Move Up A Gear
Publication date: November 2004
Publication: Global Risk Regulator
Author: Editorial
KRIs sound fine in principle, but do they work in practice? An expanded indicators library, with fifty participating banks, will provide the test. A similar project for insurers is likely soon.
Software vendors aim to incorporate KRIs
Publication date: November 2004
Publication: Operational Risk
Author: Editorial
Article describes the operational risk vendor summit held in London and the outline of how software vendors would be expected to incorporate support for standardised industry indicators into their products.
Key Risk Indicators Move Up A Gear
Publication date: November 2004
Publication: Global Risk Regulator
Author: Editorial
KRIs sound fine in principle, but do they work in practice? An expanded indicators library, with fifty participating banks, will provide the test. A similar project for insurers is likely soon.
Software vendors aim to incorporate KRIs
Publication date: November 2004
Publication: Operational Risk
Author: Editorial
Article describes the operational risk vendor summit held in London and the outline of how software vendors would be expected to incorporate support for standardised industry indicators into their products.
Trying to dodge the new product pineapple
Publication date: September 2004
Publication: Operational Risk
Author: Ellen Leander, Operational Risk
Banking regulators' proposed rules for new product approval processes will require firm-wide 'know your customer' frameworks. Not surprisingly, banks have criticised the proposals.
A structured framework for KRIs
Publication date: July 2004
Publication: Operational Risk
Author: Mike Finlay, RiskBusiness
London-based Risk
Business
International and the US’s Risk Management Association have come together to create the KRI Study, KRI Library and KRI Exchange as a means for financial services firms to take advantage of key risk indicators (KRIs). Risk
Business
’ Mike Finlay outlines the main objectives and benefits of this joint initiative.
Bank KRI study to take off
Publication date: July 2004
Publication: Operational Risk
Author: Editorial
Alongside the study of key risk indictors (KRIs) at banks being conducted by Pennsylvania-based Risk Management Association and London-based consulting firm Risk
Business
, a similar programme is to be launched
for insurance companies.
The economics of a pandemic
Publication date: July 2004
Publication: Operational Risk
Author: Oonagh Leighton, Operational Risk
The HIV/Aids pandemic is the world’s greatest public health disaster. Oonagh Leighton examines its impact on financial institutions, including the growth of risk strategies to manage this evolving challenge.
Bank KRI study to take off
Publication date: July 2004
Publication: Operational Risk
Author: Editorial
Alongside the study of key risk indictors (KRIs) at banks being conducted by Pennsylvania-based Risk Management Association and London-based consulting firm Risk
Business
, a similar programme is to be launched
for insurance companies.
A Difference in Kind
Publication date: June 2004
Publication: Risk
Author: David Rowe, SunGard
Tracking key risk indicators is emerging as a central aspect of best practice for operational risk management. Defining these indicators and establishing benchmarks for them, however, is a complex task.
Risk
Business
Comment On Basel II
Publication date: June 2004
Publication: RiskBusiness
Author: RiskBusiness
Risk
Business
Comment On Basel II
Comment : International Convergence of Capital Measurement and Capital Standards
Publication date: June 2004
Publication: RiskBusiness Briefing
Author: RiskBusiness
Comparative document produced by Risk
Business
for the industry highlighting the key differences between the final published version of Basel II and previous drafts.
A Difference in Kind
Publication date: June 2004
Publication: Risk
Author: David Rowe, SunGard
Tracking key risk indicators is emerging as a central aspect of best practice for operational risk management. Defining these indicators and establishing benchmarks for them, however, is a complex task.
Key Risk Indicator project progressing
Publication date: May 2004
Publication: Operational Risk
Author: Editorial
The Key Risk Indicator (KRI) project which the US-based Risk Management Association is conducing jointly with UK consultants Risk
Business
is continuing to make progress, says Mike Finlay, a principal at Risk
Business
.
Marionettes, Masters of the Universe? Or The Human Factor in Operational Risk
Publication date: May 2004
Publication: RMA Journal
Author: Jonathan Howitt, Man Group, Michael Mainelli, Z/Yen, and Charles Taylor, RMA
Understanding the drivers of human behavior will help us manage risks better. People, after all, design the processes, build and implement the systems, and put in place the organizational structures that lead to risk taking. People engineer the products, establish networks of suppliers, and solicit the clients. Even when acts of God disrupt our affairs, people make the judgments and
take the emergency actions that shape the outcome. Put very simply: We
assume risk to make money and deliver value. Operational risk is our own
creation. The implication is equally simple—when things go wrong, we have only ourselves to blame. Our misunderstanding, miscommunication, or, worse, our own misconduct cause failure. Understanding ourselves, both as individuals and as organizational people, is where we need to start.
Perspectives on Operational Risk
Publication date: May 2004
Publication: RMA Journal
Author: Charles Taylor
The introduction to the May 2004 Special Edition on Operational Risk of the RMA Journal, where Taylor provides some different views.
KRI VaR
Publication date: May 2004
Publication: RMA Journal
Author: Tim Shepheard-Walwyn
Lessons from manufacturing for the financial services industry.
A Structured Approach to Building Predicitive KRIs
Publication date: May 2004
Publication: RMA Journal
Author: Aravind Immaneni, Chris Mastro and Michael Haubenstock
Leading indicators with good predictive capabilities are critical to the successful management of enterprise risk. This article describes how a process that incorporates some Six Sigma methods for developing and using key risk indicators was used at Capital One.
Getting Traction with KRIs: Laying the Groundwork
Publication date: November 2003
Publication: RMA Journal
Author: Charles Taylor, RMA and Jonathan Davies, RiskBusiness
This article summarizes insights on the incidence of operational risk gleaned from Part I of the KRI Framework Study and discusses the direction of future work.
Getting Traction with KRIs: Laying the Groundwork
Publication date: November 2003
Publication: RMA Journal
Author: Charles Taylor, RMA and Jonathan Davies, RiskBusiness
This article summarizes insights on the incidence of operational risk gleaned from Part I of the KRI Framework Study and discusses the direction of future work.
Building Effective Indicators to Monitor Operational Risk
Publication date: May 2002
Publication: RMA Journal
Author: Jonathan Davies, RiskBusiness and Michael Haubenstock, CaptialOne
Indicators are the measures used to monitor and predict operational events. They complement the self-assessment process to continually monitor the effectiveness of controls. Use them with escalation criteria to keep management informed of emerging issues.
Building Effective Indicators to Monitor Operational Risk
Publication date: May 2002
Publication: RMA Journal
Author: Jonathan Davies, RiskBusiness and Michael Haubenstock, CaptialOne
Indicators are the measures used to monitor and predict operational events. They complement the self-assessment process to continually monitor the effectiveness of controls. Use them with escalation criteria to keep management informed of emerging issues.
