Basel III regulation intent is to increase the resiliency of banks through effective risk management practices that can … reduce significant idiosyncratic operational losses. A systemic risk event that leads to significant losses in a bank holding … are evident in human error, fraud, and legal expenses that are aligned to systemic operational risk. The occurrences of …

How does business complexity affect risk management in financial institutions? The commonly used risk measures rely on … answering this question. Balance-sheet measures, such as return on assets, capture the risk when it is realized, while empirical … identification requires knowledge of the risk when it is actually taken. Market-based measures, such as bond yields, not only ignore …