This paper discusses the definition of operational risk laid down by the second Basel accord. The loss event types along with examples provided by Basel committee are put down to clarify the definition. Recent examples of operational risk events are added to further enhance understanding

The research focuses on changes in the compliance function within major European banks and other financial intermediaries and on the effects of MiFID implementation. The research: a) focuses on multinational groups based in Europe and operating in investment services, such as banks, asset...

La version française de ce document est disponible à "http://ssrn.com/abstract=2198583" http://ssrn.com/abstract=2198583The study of risk management began after World War II. Risk management has long been associated with the use of market insurance to protect individuals and companies from...

The resetting of the risk management agenda through successive capital accords has had little impact on the ability of many firms to prevent losses which raises concerns as to whether the risk calculation methods applied in the calibration of regulatory capital are fit for purpose. This has been...

As observed in at least the last two decades, financial engineering has not only changed the way in which business is conducted in the finance world, but also the daily life of the average citizen in the leading economies. Structured products have been deemed weapons of mass destruction in some...

Basic shareholder rights include control rights, cash flow rights, and the rights to transfer shares. We investigate the impact of the divergence of shareholder rights on corporate risk-taking by exploiting two regulatory reforms in China. First, the privatization of Chinese state-owned...

In the period following the global financial crisis high profile regulatory breaches and other instances of banks' misconduct triggered widespread concern that the culture and standards of conduct in banks had declined to a point of unacceptability. The crisis also brought into sharp focus the...

This paper surveys the relationship between risk management, particularly financial risk management, and questions of distributive justice. Risk management proceeds by mitigation or transfer. When risk is transferred, questions of distributive justice are often relevant, but they are seldom...

The coronavirus has produced a public health debacle of the first-order. But the virus is also propagating the kind of exogenous shock that can precipitate – and to a considerable degree is already precipitating – a systemic event for our financial system. This currently unfolding systemic...

The purpose of the current study is to examine the extent to which audit risk and litigation risk cause auditors to increase reliance on decision aids. These are particularly relevant issues in the era of Sarbanes-Oxley and abundant audit litigation, as decision aids hold the potential to...