Operational Risk Insurance - Treatment under the New Basel Accord
- Topics:
- Enterprise Risk Management
- Tags:
- Harvard Knowledgebase,
- Insurance,
- Management,
- Risk,
- Security,
- Strategy
- Source:
- Harvard Knowledgebase
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Overview: Although operational risks are as old as banking itself, it was not until recently that they came into the focus of regulators and bank management. There are in fact reasons to believe that operational risks in banks may be increasing due to developments in the financial industry. Deregulation of financial institutions has opened the market to new complex products with associated new risks. Globalization, large-scale mergers and acquisitions, and outsourcing pose new challenges. The Internet and automated technologies have revolutionized the access to information and introduced e-banking, but create risks of system failures and security leaks. This paper tries to focus on the basic idea that regulators should be careful not to create distortion of preexisting risk management best practices when imposing capital regulation for operational risk.
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Format: PDF | Size: 94KB | Date: Apr 2002 | Pages: 44
