Operational Risk Management English 2008

Operational Risk is one of the important arms of the risk management triangle the other two being Credit Risk and Market (Treasury) Risk. There was no precise definition of operational risk until Basel Accord II came into being in June 2004. In order to efficiently face this new challenge in risk management, the prerequisites are - creation of risk culture and enterprise wide operational risk awareness. Proactive steps at all levels of operation will operate as a safety valve and in the process, may facilitate lower risk capital charge. The entire gamut of operational risk has been covered appropriately. Author provides suitable examples, wherever necessary. This book exhaustively dealt with sound practices and principles that form the 'core' of operational risk management under Basel Accord II.