Operational risk is often described as the “silent disruptor” of the financial world. Unlike credit risk or market risk, which are measurable and frequently modeled with precision, operational risk is ...

Financial institutions are in the business of risk management and reallocation, and they have developed sophisticated risk management systems to carry out these tasks. The basic components of a risk ...

The U.S. bank supervisory agencies recently issued for public comment revised guidance regarding the implementation of the proposed Basel II-related, risk-based capital requirements. Among the ...

The operational risk component of the agencies' capital proposal could not possibly pass any cost-benefit analysis, write Grag Baer and Francisco Covas, of Bank Policy Institute. If the capital rule ...