Operational Risk Management

The rules for banking risk capital allocation are being changed under the so called Basel 2 Accord, which should be finalized mid year 2004. One of its more important topics is the one that established that financial institutions have to allocate capital and, more particularly, to manage operational risk, which has never been the main focus of the industry. This new book focuses on operational risk management techniques and how to structure the management of risk. It covers non financial techniques to improve the modus operandi of banking operations, including the use of Six Sigma and Balanced Scorecard techniques. It also covers financial management of operational risk, which is a new area within the industry.