Cover -- Mastering Operational Risk -- Contents -- Preface -- Acknowledgements -- The authors -- Part 1 Setting the scene -- What is operational risk? -- The road to operational risk -- What do we mean by operational risk? -- The boundary issue -- Why operational risk is different from other risks -- Cause and effect -- Measurement and management of operational risk -- Challenges of operational risk management -- Introducing the framework -- The business case for operational risk management -- Introduction -- Operational risk management as a marketing tool -- Benefits of getting operational risk management right -- Benefits beyond the framework -- Business optimisation -- Part 2 The framework -- Governance -- Introduction -- Operational risk management framework -- Operational risk policy -- Operational risk appetite -- Roles and responsibilities statements -- Glossary -- Timeline -- Risk and control assessment -- Aims of risk and control assessment -- Prerequisites -- Basic components -- Avoiding common risk identification traps -- Assessing risks -- Owners -- Identifying controls -- What a risk and control assessment looks like -- Action plans -- How to go about a risk and control assessment -- Using risk and control assessments in the business -- Why do risk and control assessments go wrong? -- Summary -- Events and losses -- Introduction -- What is meant by an event -- Data attributes -- Who reports the data? -- Reporting threshold -- Use of events -- External loss databases -- Using major events -- Timeliness of data -- Summary -- Indicators -- Introduction -- Key performance indicators and key risk indicators -- Establishing KRIs and KCIs -- Targets and thresholds -- Periodicity -- Identifying the leading and lagging indicators -- Action plans -- Dashboards -- Summary -- Part 3 Advancing the framework -- Reporting -- Introduction.

Common issues -- Basic principles -- Report definition -- Reporting styles and techniques -- Dashboard reporting -- Summary -- Modelling -- Introduction -- Previous approaches to operational risk modelling -- Towards an inclusive approach -- Distributions and correlations -- Practical problems in combining internal and external data -- Confidence levels and ratings -- Obtaining business benefits from capital modelling -- Obtaining business benefits from qualitative modelling -- Summary -- Stress tests and scenarios -- Introduction -- What are they and what's the diference between them? -- Why use scenarios? -- Problems with scenarios . . . -- . . . and how to do them better -- Governance -- Developing a set of practical scenarios -- Preparing for the extreme event -- Typical problems following scenario development -- The near death experience -- Applying scenarios to operational risk management data -- Summary -- Part 4 Mitigation and assurance -- Business continuity -- Introduction -- Business continuity and risk management -- Policy and governance -- Business impact analysis -- Threat and risk assessment -- The business continuity strategy and plan -- Testing the plan -- Maintenance and continuous improvement -- Insurance -- Operational risk and insurance -- Insurance speaks to cause -- Buying insurance -- The insurance carrier -- Alternative risk transfer mechanisms -- Conclusion -- Internal audit - the third line of defence -- The three lines of defence -- Independent assurance -- Internal and external audit -- Internal audit and risk management oversight -- The role of internal audit -- Audit committees -- Effective internal audit -- Part 5 Practical operational risk management -- Outsourcing -- What is outsourcing? -- Outsourcing - transforming operational risk -- Deciding to outsource -- The outsourcing project - getting it right at the start.

Risk assessment -- Some tips on the request for proposal -- Selecting the provider -- Some tips on service level agreements -- Managing the project -- Exit strategy -- People risk -- Introduction -- The people environment -- Mitigating people risks -- Succession planning -- The human resources department -- Key people risk indicators -- Reputation risk -- What is reputation? -- Stakeholders -- Reputation and brand -- What is reputation risk? -- Valuing reputation and reputation risk -- How can reputation be damaged? -- A framework for reputation risk management -- Reputation risk controls -- Tracking reputation risk -- Managing intermediary risk -- It won't happen to me: what to do when it does -- Resources and further reading -- Index.

Operational risk is a constant concern for all businesses.  It goes far beyond operations and process to encompass all aspects of business risk, including strategic and reputational risks.  Within financial services, it became codified by the Basel Committee on Banking Supervision in the 1990s. It is something that needs to be taken seriously by all those involved in running, managing and leading companies. Mastering Operational Risk is a comprehensive guide which takes you from the basic elements of operational risk, through to its advanced applications. Focusing on practical aspects, the book gives you everything you need to help you understand what operational risk is, how it affects you and your business and provides a framework for managing it. Mastering Operational Risk: Shows you how to make the business case for operational risk, and how to develop effective company-wide policies Covers the essential basic concepts through to advanced managements practices Uses examples and case studies which cover the pitfalls and explains how to avoid them Provides scenario analysis and modelling techniques for you to apply to your businessOperational risk arises in all businesses.  It is a broad term and can relate to internal processes, people,  and systems, as well as external events. All listed companies, charities and the public sector must make risk judgements and assessments and company managers have an increasing responsibility to ensure that these assessments are robust and that risk management is at the heart of their organisations. In this practical guide, Tony Blunden and John Thirlwell, recognised experts in risk management, show you how to manage operational risk and show why operational risk management really will add benefits to your business. Mastering Operational Risk includes: The business case for operational risk

Risk and control assessment How to use operational risk indicators Reporting operational risk Modelling and stress-testing operational risk Business continuity and insurance Managing people risk Containing reputational damage.

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2019. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.