Summary |
This book is written for investment bankers, commercial bankers, loans officers, traders, treasurers and other practitioners in the financial industry, and also for members of the board and senior managers who want to take a proactive stance towards the control of operational risk. In Part 1, Chapter 1 provides factual and documented evidence of how financial institutions define and manage operational risk.
Chapter 2 takes a closer look at what is happening in merchant, corporate and investment banking.
Chapter 3 focuses on private banking.
The first part of the book concludes with chapter 4, which examines operational risks characterizing the insurance industry, with particular emphasis on what might be expected as insurance companies enter retail banking.
Part 2 aims to identify ways and means for managing and controlling operational risks. Chapter 5 makes the point that there is no way of avoiding operational risk in a service economy, but there are sound strategies for damage control.
The dangers of uncontrolled operational risk are examined in Chapter 6.
Chapter 7 presses the point that better organization and structure often proves to be instrumental in controlling operational risk.
The key area of technology is examined in Chapter 8.
Part 3 addresses legal risk in its different forms, including compliance and taxation. Chapter 9 explains why the majority of credit institutions think legal risk is a complex issue, particularly in the context of a deregulated, globalised economy where diversity in laws and regulations is the norm rather than the exception.
The massage of Chapter 10 is that an institution’s management has a much wider role to play than that of just solving financial problems.
Chapter 11 concentrates on taxation rules and legal risk.
The focal point of Chapter 12 is environmental risk, and it divides into two parts.
Chapter 13 discusses the characteristics, goals and functions of the new generation of payments and settlements solutions.
A key area of concern in the current environment is the development of efficient ways in which to handle intraday exposure, and this is the subject matter of Chapter 14.
Chapter 15 is devoted to studying the development of national and cross-border electronic payments.
The book concludes with Chapter 16, which concentrates on operational issues associated with dematerialization, delivery versus payment (DVP) and the problems with securities lending.
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