Over the last few days I was in Washington, DC where I spoke at a bank risk management conference. It was a busy trip, but I did have a little time to visit the National Archives, which displays the US Constitution, the Declaration of Independence and the Bill of Rights. Profound documents that evidence the … Continue reading
Another day, another shockingly spectacular operational risk event, this time a rogue trader at UBS causing a $2.3 billion loss. As I understand it, the underlying actions occurred over a span of several years, involved fraudulent transactions that he was able to enter and manipulate, lacked sufficient dual controls and had no clear enforcement method … Continue reading
I am becoming increasingly convinced that one of the most under-managed areas of risk management is model risk. Often when I see risk managers at bank conferences I pose the question, “Do you have a completed inventory of all key models used for decision making, including risk ratings and validation schedules?” This is always an … Continue reading
A question that comes up from time to time is, “What is the relationship between Internal Audit and Operational Risk Management?” Related versions include: “Where does one end and the other begin?” and “Is ORM just Audit 2.0?” In all fairness I have seen instances where these were very fair questions, because both groups were … Continue reading
Thank you for visiting OpRisk Advantage. Hopefully the information you find here will help you in the advancement of your own Operational Risk Management program. Please feel free to comment on any of the content you find here, just remember to be civil, respectful and constructive. You can also send comments, questions and topical suggestions … Continue reading
