In recent years, a growing number of financial services companies in major industrial countries have begun to make inroads into each other's sectors, spurred by changing financial needs, innovations in financial engineering, deregulation, and a variety of other trends and developments. These...

Hedge funds in Japan have recently been attracting more capital from institutional investors, including financial institutions. This paper highlights the relevant risk management issues for hedge fund investments. An investor investing in hedge funds requires a different risk management...

Hedge funds are becoming increasingly prominent in global financial markets. Although hedge funds and investment trusts are both forms of pooled investment vehicles, hedge funds are characterized by greater freedom for investment managers in terms of investment strategies. This is because hedge...

This exercise was conducted jointly by the Financial Service Agency (FSA) and the Bank of Japan (BOJ). Participation in this exercise was voluntary. It requested information on operational risk data (internal loss data and scenario data) from 14 banks (including bank holding companies) that use...

The Bank of Japan published a paper on sound practice, "Business Continuity Planning at Financial Institutions," in July 2003 in order to identify which issues need to be addressed in developing business continuity management (BCM). Based on the paper, the Bank has since been discussing BCM with...

The market for securitized products has expanded around the globe. Two factors in particular have supported this expansion: advances in financial engineering have enabled a wide range of products to be synthesized for the purpose of transforming and reselling the risks and returns on portfolios...

A number of financial institutions in Japan and overseas employ the loss distribution approach as an operational risk measurement technique. However, as yet, there is no standard practice. There are wide variations, especially in the specifications of the models used, the assumed loss severity...

The Bank of Japan conducted the third Questionnaire Survey on Business Continuity Management, following the previous surveys in 2002 and 2004.

This paper contains the findings from the "Questionnaire Survey on Business Continuity Management".

This paper summarizes the results of the fourth Questionnaire Survey on Business Continuity Management conducted during October and November 2008. The survey has been conducted every other year since 2002 on financial institutions that have current accounts at the Bank of Japan with a large...