Operational risk management : best practices in the financial services industry
Ariane Chapelle
Cover -- Title Page -- Copyright -- Contents -- About the Author -- Foreword -- Preface -- Introduction -- Part One Risk Identification -- Chapter 1 Risk Identification Tools -- Top-Down and Bottom-Up Risk Identification -- Exposure and Vulnerabilities -- The Risk Wheel -- The Root Causes of Damages and Revenues -- Process Mapping -- Interviews of Key Staff -- What Already Happened: Internal Losses, External Losses and Near Misses -- Chapter 2 Scenario Identification Process -- Scenario Preparation and Governance -- Scenario Generation and Selection -- Chapter 3 Risk Definition and Taxonomy -- Defining Risks -- Risk Management Taxonomy -- Chapter 4 Risk Connectivity and Risk Networks -- Managing Risks in Clusters -- Risk Connectivity to Prioritize Risk Management Attention -- Risk Connectivity Applied to Top Risk Survey -- Part Two Risk Assessment -- Chapter 5 Risk Appetite -- Context and Objectives -- Reward: The Missing Piece of Risk Appetite -- Risk Appetite Structure -- Top-Down and Bottom-up Approaches to Risk Appetite -- Tying Risk Appetite with the Rest of the Framework -- How Much is too Much? -- Chapter 6 Risk and Control Self-Assessments -- Structure and Objectives of RCSAs -- Impact and Likelihood Ratings and Assessments -- Combining Likelihood and Impact: The Heatmap -- Links with Other Parts of the Framework -- Chapter 7 Scenario Assessment -- Severity Assessment -- Frequency Assessment -- Range of Scenario Assessment Techniques -- Scenario Documentation and Validation -- Management Lessons from Scenario Analysis -- Chapter 8 Regulatory Capital and Modeling -- Regulatory Capital: Rationale and History in a Nutshell -- Pillar 1 - Regulatory Capital for Operational Risk -- Pillar 2 - Supervisory Review Process -- Stress Testing -- Wind-Down Planning -- Part Three Risk Mitigation -- Chapter 9 Operational Risk Governance.
