Operational Risk Management - 50825 Words

≈√ F M A G u i d e l i n e s on Operational Risk Management These guidelines were prepared by the Oesterreichische Nationalbank in cooperation with the Financial Market Authority Published by: Oesterreichische Nationalbank (OeNB) Otto-Wagner-Platz 3, 1090 Vienna, Austria Austrian Financial Market Authority (FMA) Praterstraße 23, 1020 Vienna, Austria Produced by: Oesterreichische Nationalbank Editor in chief: Gà ¼nther Thonabauer, Communications Division (OeNB) Barbara Nà ¶sslinger, Staff Department for Executive Board Affairs and Public Relations (FMA) Editorial processings: Chapter I and III: Roman Buchelt, Stefan Unteregger (OeNB) Chapter II and IV: Wolfgang Fend, Radoslaw Zwizlo, Johannes Lutz (FMA) Design:†¦show more content†¦xecutive Board 3 Contents 1 Causes and Deï ¬ nition of Operational Risk 1.1 Introduction 1.2 Deï ¬  nition of Operational Risk 1.3 Characteristics and Importance of Operational Risk 1.4 Case Studies 2 Methods of Operational Risk Management 2.1 Introduction 2.2 Organizational Framework Conditions 2.2.1 Framework 2.2.2 Roles and Responsibilities 2.3 Step-by-Step Introduction of Operational Risk Management 2.3.1 Starting Point 2.3.2 Raising Awareness and Creating the Basis 2.3.3 Implementation 2.3.4 Enhancements and Ongoing Adaptation 2.3.5 Integration into Bank-Wide Capital Allocation and Risk Management 2.4 Operational Risk Management as a Cycle 2.5 Risk Identiï ¬ cation and Assessment 2.5.1 Self-Assessment (Risk Inventory) 2.5.2 Loss Database 2.5.3 Business Process Analysis 2.5.4 Scenario Analysis 2.5.5 Key Risk Indicators (KRIs) 2.5.6 Quantiï ¬ cation of Operational Risk 2.5.7 Exemplary Approaches to Calculating Regulatory Capital 2.6 Risk Treatment 2.6.1 Risk Avoidance 2.6.2 Risk Mitigation 2.6.3 Ri sk Sharing and Transfer 2.6.4 Risk Acceptance 2.7 Risk Control 2.8 Risk Reporting and the Role of Communication and Information 2.8.1 Communication and Information 2.8.2 Reporting 2.9 Company-wide Risk Management 2.10 Operational Risk Management in Smaller Banks 2.11 Operational Risk Management by Securities and Investment Firms in Austria 2.12 Principles for the Sound Management of Operational Risk 3 Speciï ¬ c Measures of Operational Risk Management 3.1 Systems: InfrastructureShow MoreRelatedOperational Risk Management2610 Words   |  11 PagesCORPORATE RISK MANAGEMENT ASSIGNMENT OPERATIONAL RISK MANAGEMENT (ORM) IN BANKS Risk is inherent in any walk of life in general and in financial sectors in particular. Till recently, due to regulated environment, banks could not afford to take risks. But of late, banks are exposed to same competition and hence are compelled to encounter various types of financial and non-financial risks. Risks and uncertainties form an integral part of banking which by nature entails taking risks. There areRead MoreOperational Risk Management2081 Words   |  9 PagesOperational Risk Management Operational Risk Management, otherwise known as ORM, is defined as a continual recurring process which includes risk assessment, risk decision making, and execution of risk controls, which results in acceptance, mitigation, or avoidance of risk. It is the oversight of operation risk, which is a risk arising from execution of a company’s business functions. It is a very wide concept which focuses on the risks arising from the people, systems and processes through whichRead MoreWhat Is Operational Risk Management, Kri And Kpi?1548 Words   |  7 PagesIntroduction 1.1 What is operational risk management, KRI and KPI? Operational risk is the risk of loss resulting from inadequate or failed internal processes, people, systems or external events where strategic, systemic and reputation risk are not included. KRI KPI: Definition of KRI - â€Å"It is a metric for measuring the likelihood that the combined probability of an event and its consequences will exceed the organization’s risk appetite and have a very negative impact on an organizations abilityRead MoreOperational Risk Management in Banking Sector: an Overview2324 Words   |  10 Pages Volume : 3 | Issue : 1 | January 2013 | ISSN - 2249-555X Operational Risk Management in Banking Sector: An overview Keywords Rakesh Chutia Assistant, State Bank of India Margheita-786181 Dist.-Tinsukia Assam ABSTRACT Operational risk is inherent in all banking products, activities and processes and systems and the effective management of operational risk is of paramount importance for every bank’s board and senior management. With globalization and deregulation of financial markets, increasedRead MoreScenario Analysis for Basel Ii Operational Risk Management2572 Words   |  11 PagesBASEL II OPERATIONAL RISK MANAGEMENT 1 Introduction: Scenario Analysis for Potential Catastrophic Losses 1 2 Addressing Operational Risk 3 3 Scenario Analysis in a Risk Measurement Framework 5 4 Scenario Analysis in a Risk Management Framework 6 5 Achieving Risk Measurement and Management 6 6 Conclusion: Benefiting from Scenario Analysis 7 1 Introduction: Scenario Analysis for Potential Catastrophic Losses â€Å"Are you saying that you want us to figure out how to lose R50 million?† asked the risk managerRead MoreThe Department Of Defense s Operational Risk Management Essay1590 Words   |  7 PagesFurthermore, it will look what types a factors should be looked at when making an organizations plans. 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It is expressed as a percentage of a banks risk weighted credit exposuresRead MoreWells Fargo Risk Management Paper1418 Words   |  6 PagesWells Fargo Risk Management â€Å"Risk comes from not knowing what you’re doing.†Ã¢â‚¬â€Warren Buffet 2014 Jovan Gonzalez University of Texas at San Antonio 2/11/2014 Wells Fargo Risk Management â€Å"Risk comes from not knowing what you’re doing.†Ã¢â‚¬â€Warren Buffet 2014 Jovan Gonzalez University of Texas at San Antonio 2/11/2014 Overview When it comes to managing key risks that financial institutions face such as, credit risk, asset/liability interest rate and market risks, Wells Fargo Board

Essay On Public Need For Health Care - 1023 Words

Public Need for the Health Insurance Portability and Accountability Act The Health Insurance Portability and Accountability Act was signed into a federal law in 1996. During the early 1990’s there was a public need to alter the way that medical records were discussed between insurance, doctors and patients. Prior to the advancement of computers into the medical world, the industry was mainly paper records that were written and stored in file rooms. Only people who were authorized could get to these records because they had the keys to the room. During the early 1990’s however, computerizing medical records was starting to become the normal way of taking care of patients, recording their vital signs and their medical histories onto a†¦show more content†¦HIPAA was created to fight against waste, fraud and abuse in health care deliverance and health insurance policies, improve the ability of health insurance being portable, and to simplify the administration of health insurance. HIPAA mandates a set of patient rights to help protect the patient from breaches in confidentiality. Some of these rights include the right to access a copy of medical records, the right to receive a notice of privacy practices, and the right to request an amendment of a medical record. There is also safeguards for the security of all these documents. There are detailed requirements about the rules for physical, technical and administrative security in the HIPAA Security Rule. There must be a number of security measures in place to ensure the safety of these documents. In each practice, there must be a HIPAA compliance officer who is making sure these mandates are met by everyone who works there. They take a special course in compliancy and are responsible for handling anyone that breaks the HIPAA laws. Although there is only one HIPAA compliance officer, each person who works in the practice must take training courses on how to comply with HIPAA’s standards. Most training is ongoing as things get updated or the need for re-teach ing is apparent. If a patient notices a breach in HIPAA, they are able to file a complaint about the incident and the Office of Civil Rights will investigate the case and see if the Privacy Rule wasShow MoreRelatedImpact Of Innovation On Public Sector1587 Words   |  7 PagesC (2010) uses the term public sector innovation to refer to â€Å"the process of creating new ideas and turning them into value for society† .(Bason,2010) then goes on to discuss about the value public sector innovation holds and asserts that the public sector has four major components: productive, service experience, results and democracy. (Bason, 2010, p.34) There is evidence that innovation plays a crucial role in regulating in the public sector. Recent developments in public sector organisations haveRead MoreSocial Determinants Of Health And Health1170 Words   |  5 Pagesdeterminants of health are social, economic and physical factors that affect the health of individuals in any given population. There are fourteen social determinants of health but Income is perhaps the most important of these because it shapes living conditions, influences health related behaviors, and determines food security. In Canada, people with lower incomes are more susceptible to disease/ conditions, higher mortality rate, decreased life expectancy and poorer perceived health than people withRead MoreNursing Professional Identity Essay1693 Words   |  7 PagesThis essay focuses on the impact of historical development of nursing on contemporary representations of the nursing profession. 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The ultimate goal of the U.S. system is making sure quality care is accessible to its consumers

A Case Study of the Boscastle Floods Free Essays

Where? Boscastle is in North Cornwall, in the South West of England. A small seaside town, it faces out onto the Atlantic Ocean. What? Flash floods hit the town on Monday 16th August 2004 in a 1 in 50 year occurrence. We will write a custom essay sample on A Case Study of the Boscastle Floods or any similar topic only for you Order Now This caused 120mm of rain in 7 hours, twice the monthly average and causing the river to rise 8/9 feet. Understandably the river broke its banks, flooding Boscastle severely. Causes? The main cause was quite simply the fact that there was a lot of rain. 120mm of it in fact. Seeing as it had been raining for a few weeks before, saturating the ground, the water had nowhere to go but down the 2 steep valleys surrounding the village into the river. Or rivers – Boscastle is at the confluence of 3 rivers, the Valency and the Jordan. These understandably burst and the water was funnelled into the main road. Although this particular storm wasn’t down the global warming, we are getting more heavy storms in recent years which is very likely to be to do with global warming. Impacts? Because of the enormous volume of the water and the shape of the hills, the water went very fast towards the sea, as high as 3 metres, and a speed of 40mph, leaving destruction behind. These speeds can move cars, 100 actually through the village, emptying and destroying the car park, washing them into the harbour and sea, or just leaving them dumped in the village. The amazing rush of water coupled with cars acting as out of control cannon balls, caused homes and businesses to be knocked down or washed away. One 16th century building was completely destroyed by a run away camper van. Water rushed easily into homes, destroying everything inside. With the main road turned into a river, the tarmac was destroyed, likewise bridges and signs etc. Although resembling something like a production from the Doctor Who Special Effects team, miraculously nobody was hurt or killed, probably because of the event happening in the day, unlike the Lynmouth flood in Devon 52 years to the day which took the lives of 34 people. They also have the emergency services to thank, who rescued 120 people, many of whom scrambled onto their roofs. 60 people were evacuated to a nearby village. Longer term impacts of the floods affect both the authorities and the people. People will be put off holidaying in Boscastle, an area almost totally reliant on tourism, costing their economy and the jobs and livelihood of people. The authorities will also have to replace damaged roads etc. and think about flood defences for the future. Insurance companies predict the clean up bill will run into millions of pounds. For the inhabitants of Boscastle, not only have their businesses been destroyed. The floods have damaged houses not only through pure destruction, but through damp as well. Possessions will have to be replaced as well as the floods having a great emotional impact on people. Reduction Methods? Considering Boscastle is a small village, which has only been flooded severely once, not much money can be allowed to be spent on stopping future floods. However, small reduction methods could be made such as deepening the river so it can hold more water. The material dug out can be used to create embankments to further deepen it. The course of the rivers could be changed, such as straightening them to make the water reach the sea faster without so many meanders to turn round. The river could be pumped underground in large pipes, although Boscastle would lose the river, which is one of the tourist appeals of the place. The authorities have actually spent à ¯Ã‚ ¿Ã‚ ½0.8m on widening and lowering the river Valency. They’ve also put a relief channel underground which can take water away from the river when there is a lot of rainfall. Finally, they’ve inserted a tree catcher so trees cannot create dams downstream if washed into the river. How to cite A Case Study of the Boscastle Floods, Free Case study samples