Measuring and managing operational risks in financial institutions - Christopher Lee Marshall

Measuring and Managing Operational Risks in Financial Institutions describes the first systematic approach to identifying, measuring, analyzing, and managing all the operational exposures within a business. Starting with business lines’ most critical processes and resources, the author explains how to use loss data to model the most significant discrete loss events and continuous risk factors that may affect them. It goes on to explain how risks can be aggregated over the entire business and therefore used to estimate the risk capital associated with different parts of the business. The author also develops a contingent approach to enterprise and operational risk management, going beyond the narrow functional approaches traditionally advocated by financial risk managers, insurance managers, quality engineers and the like.Measuring and Managing Operational Risks in Financial Institutions is essential reading for anyone involved in operational and enterprise–wide risk management.