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. 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