Beruflich Dokumente
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Agenda
Risk- General Operational Risk Introduction to Basel 2 Operational risk and Basel 2 Approaches to Operational Risk Managing Operational Risk Who should manage operational risk
Risk - General
There is no risk free activity Only degrees of risk - high to low Nothing risked nothing gained High risks bring in high gains Risks if not managed well can result in disaster Banking business is one of taking risks
Operational Risk
Types of OR
Internal Fraud
External Fraud Employment Practices & Workplace Safety Clients, Products & Business Practices Damage to Physical Assets
Examples
Unauthorized transaction resulting in monetary loss Embezzlement of funds Branch robbery Hacking damage (systems security) Employee discrimination issues Inadequate employee health or safety rules Money laundering Lender liability from disclosure violations or aggressive sales Natural disasters, e.g. earthquakes Terrorist activities Utility outage (e.g. blackout)
Data entry error Execution, Delivery & Process Incomplete or missing legal documents Management Disputes with vendors/outsourcing
Introduction to Basel 2
Basel 2 is a type of recommendations on banking laws and regulations issued by the basel committee on banking supervision that was initially published in june 2004 Objective of basel 2 is to create an international standard that banking regulators can use when creating regulations about how much capital banks need to put aside to guard against the types of financial and operational risks banks face
Thank You
Presented By:
Debasish Devkumar padhy