We study earnings per share (EPS) forecast revision and accuracy of banking analysts around operational risk event announcements in U.S. banks. We find that first announcements of operational risk events are more informative than their settlement announcements. Optimistic banking analysts revise...

We use an empirical model to categorize firms into portfolios based on operational risk. Using these portfolios, we show that a strategy of buying firms in the highest decile of operational risk and shorting firms in the lowest decile of operational risk earned a positive but insignificant...

Over the past three decades, Operational risk has evolved as a disastrous risk threatening the survival of financial industry globally. There is now a shift in treatment of this risk from being considered merely an idiosyncratic type to a systemic risk category. These changes have triggered a...