Operational Risk Management

AGENDA 1. 2. 3. 4. 5. Announcements Financial Markets and Net Present Value Survey Results Optional Material (e.g. Cases, Practical

This paper will thoroughly define and explain planning and mitigation. Additionally, it will cover several factors that play a role in each category. Specifically, this paper will look into several phases of planning to include: continuity of operations; mission essential functions; planning development; and preparedness. Furthermore, it will look what types a factors should be looked at when making an organizations plans. In addition, this paper will look at mitigating risks, specifically cyber and physical risk mitigation and some of the different approaches risks can be mitigated. Finally, this paper will briefly look at the Department of Defense’s Operational Risk Management process and how it ties planning and mitigation together.

Intervention by the central bank is warranted to avoid welfare loss for the institution’s stakeholders since it may be that due to access to supervisory information, the authorities are in a better position to evaluate the financial position of a bank rather than the inter-bank market. The other situation in which the central bank may be the LOLR is when the stability of the entire financial system may be threatened following the failure of a solvent bank. This widespread financial instability may put to risk the ability of the financial system to carry out its primary functions.

In operating a wood-products company based in the U.S. with most sales in the U.S. yet, draws raw materials from Canada and subsequently, has employees in Canada, there are associated risks with operational and financial elements. Specifically, operational risks between the U.S. and Canada include, language, transportation infrastructure, natural disasters, law, and politics. Although most Canadians outside of Quebec speak English, French is still prevalent. Therefore, a present operational risk may be translation between English and French. Furthermore, transportation infrastructure poses an operational risk, as wood products can be shipped in many ways, which include ports, rivers, railroads, and road.

The foreign banks used in this report are Arab Bank Australia Limited, BA Australia Ltd, Bank of China (Australia) Ltd, Beirut Hellenic Bank Ltd, BNP Pacific (Australia) Limited, BOS International (Australia) Ltd, Citigroup Pty Limited, Credit Suisse Equities (Australia) Limited, Deutsche Australia Ltd, HSBC Bank Australia Limited, ING Bank (Australia) Limited, Investec Bank (Australia) Limited, JP Morgan Securities Australia Limited, Rabobank Australia Limited, RBS Group (Australia ) Pty Limited, Sumitomo Mitsui Finance Australia Ltd., UBS(Sydney) Ltd, UBS Australia Limited, UBS Private Clients Australia Ltd, and UBS Securities Australia Ltd.

Deutsche Bank, Germany’s largest bank, is facing its biggest crisis since the global financial meltdown in 2008. US regulators were

From the last decade risk management is the most researched and exciting area in the financial industry as it elaborates how to minimize and avert the hazard of risk from the portfolios of different assets and from the operations of financial institutions. Regulators and depositors mainly emphasize the risk management and according to them risk management is an essential ingredient to enhance the value of shareholders and increase their level of confidence. Risk management is the assessment of risks to mitigate, monitor and control the probability or impact on uncertain events. Risk management methods vary from industry to industry for instance it cannot be same for project management,

List of abbreviations List of tables Acknowledgements Abstract 1. 2. 3. 4. 5. 6. 7. 8. Introduction Problem statement Objectives and hypothesis of the study Literature review Structure and performance of the financial sector in

The European Banking Federation (EBF) identifies Euribor as ‘the rate at which euro interbank term deposits are being offered within the EMU zone by one prime bank to another at 11.00 am Brussels time’ , which is base for around 450 trillion dollar worth of financial products worldwide . Different from Libor rate coming in ten currencies, Euribor only presents in Euro . Moreover, Euribor is calculated by disregarding the highest and lowest 15% of all collected values . It is recorded that almost sixty organisations took part in the submission of Euribor, which are bigger and more diversified than Libor . As a result, as few as ten

In this section, we will describe the Basel Committee’s approach to financial regulation. The approach is described trough an exposition and analysis of the three Basel frameworks. We are going to explain all three of them, as the preparation of new regulation is build on top of the existing ones. It will therefore also be interesting to see in which direction the Basel Committee has changed the regulation

Management SummaryThe lowering of the interest rates by the ECB is meant to achieve and maintain the desired inflation rate of 2%. This is done to ensure price stability in the Eurozone. Then again, doing so affects financial institutions as well, first and foremost banks. Banks in general use these rates in deciding their lending rate, an important part of their business. Deutsche Bank is no exception in this respect as we conclude in this paper. Based on such monetary policy decision-making Deutsche Bank

The operational risk is a kind of risk that from occurring of inadequate or failed internal processes, people and systems, or from external events which makes the actual loss or gain differ from expected loss or gain. Operational risk is closely associated with management which also contains other kinds of risks like privacy protection, fraud, environmental risk etc. An efficient and rigorous management can reduce operational risk to a large degree while the risk may effect customer satisfaction, company reputation and share price. With the trend of global business, the proper management of operational risk is needed.

regulation of financial markets and bank liquidity. In the next few years, national and international

In the ECOWAS there are signs of progress towards a higher level of financial integration. This can be seen through the establishment of the single banking commission (Commission Bancaire de l’UMOA) that was created in 1990 to strengthen regional banking supervision. A regional commercial legal framework (Organisation pour l’Harmonisation du Droit des Affaires en Afrique— OHADA) was put in place in 1996. And cross-border restrictions have been lifted on banking and other financial services excluding insurance. (Amadou, 2006)

Risk management has become an integral part of an organization. Expectation from the risk managers are increasing in order to meet up with the increasing competition and changes in the market. Currently the risk management techniques are having broader spectrum which covers operational, strategic and the entire enterprise besides being focused only into the financial risks. ERM (Enterprise Risk Management) is the need of hour and market is expecting the risk managers to possess more skill sets in managing the ERM. But this change is not being accepted by all due to various professional requirements (Bugalla & Kallman, 2012).