Operational Risk Management

To share information, ideas and experience relating to all aspects of op-risk management and compliance with Basel II

Stanley Epstein Associate at Citadel Advantage Group

Is this a disaster in the making?

If the Misys data are correct we are sitting atop a volcano that is just about to blow! Firstly forty one percent of failed cross-border transactions is appalling! This means that almost every second cross-border transaction is not passing muster. This also raises two very clear and critical issues - transparency and operational risk. On the trans...

04 September 2008 /payments /regulation

Stanley Epstein Associate at Citadel Advantage Group

How do you price reputational risk?

A colleague, involved in operational risk management at a major bank, recently asked me what my feelings are regarding the quantification of the cost of reputational risk. Was it simply something that could be taken as a percentage of revenue or net profit and then just slapped into a spreadsheet or even a balance sheet? And the question was not th...

19 August 2008 /regulation

Stanley Epstein Associate at Citadel Advantage Group

Getting the business - risk equation right

Years ago when I first became involved in risk management in a large regional bank I was told to keep my nose out of the “business”. And what did “business” mean? Well, simply put – making a profit at any cost! The key issue that was (and still is) missed completely is that business strategy and risk management are closely linked. If you follow a s...

03 August 2008 /regulation

Elizabeth Lumley Global FinTech Commentator at Girl, Disrupted

Lost in Transit

Is anyone else a tiny bit suspicious about the recent 'Whoopes, we lost some customer data" annoucements? It is a case of something not happening very often so it is big news? Or is this the financial services' version of 'it fell off the bank of the truck.' The last time I left something on a train/bus/shopping mall 'in transit' it was mitten...

26 May 2008 /security

Gary Wright Analyst at BISS Research

DTCC and LCH Clearnet merger

The speculation that DTCC are in talks with LCH Clearnet, with a merger as a possible result must be music to the ears of everyone in the securities market. The consolidation of Clearing on this scale will be creating a mammoth opportunity for the markets to finally start the walk towards industry wide STP in the international cross border busines...

30 April 2008 /regulation

Retired Member 

2007, 1907, 1819... have we really come that far?

When doing a little research recently I was stunned by an article from the New York Times: “After a year of relative stability following the revaluation of the dollar, the world money markets have again been rocked by wild and unpredictable fluctuations.” The stunning thing is that ELLIOTT V. BELL wrote this on March 10, 1935 in the New York Time...

11 January 2008 /regulation