John Wiley & Sons · 2001
Measuring and Managing Operational Risk in Financial Institutions
Tools, Techniques, and Other Resources
Level · Institutional / advanced
Editorial summary
This title provides a thorough examination of operational risk within financial institutions, focusing on the tools and techniques necessary for effective management. It addresses the critical need for institutions to develop robust operational risk management systems, particularly in light of the increasing recognition of operational risk as a significant concern alongside market and credit risks. The book guides readers through the processes of identifying, measuring, and managing operational risks, making it a valuable resource for risk managers and analysts.
Readers will work through various methodologies and frameworks designed to assess operational risk, including discussions on human error, systems failures, and the inadequacies of internal controls. The text is oriented toward institutional readers, offering insights that are both practical and applicable to real-world scenarios. The detailed exploration of operational risk management is complemented by case studies and examples that illustrate the challenges faced by financial institutions.
The book is grounded in the regulatory and compliance landscape, providing context for the importance of operational risk management in meeting regulatory requirements. It is suitable for professionals seeking to enhance their understanding of risk management practices and the implications of operational risk on overall financial stability.
Given its institutional reading level, the book assumes a foundational knowledge of risk management principles, making it ideal for those already engaged in the field. Risk teams, treasury operations, and compliance professionals will find it particularly useful as they navigate the complexities of operational risk.
While the book offers a comprehensive overview, the depth of coverage on specific tools and techniques may vary, and readers seeking highly technical details may need to consult additional resources for in-depth analysis.
About this book
Measuring and Managing Operational Risk in Financial Institutions presents a detailed exploration of operational risk, a critical area of concern for financial institutions. The book is structured to provide a comprehensive framework for identifying, measuring, and managing operational risks, which are increasingly recognised as significant alongside market and credit risks. The author, Christopher L. Marshall, leverages his expertise to guide readers through the complexities of operational risk management, offering practical tools and techniques that can be applied within financial institutions.
The text delves into the various dimensions of operational risk, including human error, systems failures, and the inadequacies of internal controls. It discusses the importance of developing effective operational risk management systems, particularly as many institutions are still in the early stages of establishing these frameworks. Readers will encounter methodologies for assessing operational risk exposures and learn how to implement strategies to mitigate potential losses.
In terms of prerequisites, the book is aimed at institutional readers with a foundational understanding of risk management principles. It is particularly relevant for risk managers and analysts who are tasked with navigating the regulatory landscape and ensuring compliance with operational risk standards. The content is designed to enhance the reader's competency in managing operational risks effectively, equipping them with the knowledge necessary to protect their institutions from unexpected losses.
Overall, this title serves as a vital resource for professionals in the financial services industry, providing insights that are applicable to real-world scenarios. It addresses the pressing need for robust operational risk management practices and offers guidance on how to implement these systems effectively within financial institutions.
Why it matters
Operational risk management is essential for financial institutions to safeguard against potential losses stemming from human error, system failures, and inadequate controls. This book provides the necessary tools and techniques to identify and manage these risks, which is crucial for maintaining compliance with regulatory standards and ensuring the overall stability of financial operations.
Best for
This book is best suited for risk managers and analysts within financial institutions who are looking to deepen their understanding of operational risk management. It is also valuable for compliance professionals seeking to align their practices with regulatory requirements.
Not ideal for
This title may not be ideal for those without a foundational knowledge of risk management principles, as it assumes a certain level of familiarity with the subject matter. Additionally, readers seeking highly technical or specialised analyses may need to consult supplementary resources.
Key themes
operational-risk|risk-management|financial-institutions|regulation|compliance|tools-and-techniques|systems-failures|human-error|internal-controls|financial-services
Strengths
One of the key strengths of this book is its comprehensive approach to operational risk management, providing a structured framework that is applicable across various financial institutions. The author’s expertise lends credibility to the content, and the practical tools and techniques discussed are designed to be implemented in real-world scenarios. The focus on regulatory compliance further enhances its relevance for professionals in the field, ensuring that readers are equipped to meet current industry standards.
Limitations
While the book offers a thorough overview of operational risk management, some readers may find that the depth of coverage on specific tools and techniques varies. Additionally, the institutional reading level may pose a challenge for those who are new to the field of risk management, as the text assumes a foundational understanding of the subject. Readers seeking highly technical details may need to supplement their study with additional resources for a more in-depth analysis.
Related books
Shared topics with this title.
FX Cash Products: Spot, Forwards, Swaps & Non-Deliverable Forwards
Practitioner guide for treasury and markets
Luigi Pascal Rondanini · David Axtell · 2026 · Rondanini
Spot, forwards, swaps, and NDFs for corporate treasurers, traders, and risk managers—operations-first, institutionally framed.
- FX
- Treasury
- Risk management
Modern Computational Finance
Scripting for Derivatives and xVA
Antoine Savine · Jesper Andreasen · 2021 · John Wiley & Sons
Second volume: building professional derivative scripting systems—cash-flow representation, branching, American Monte Carlo hooks, and how scripting supports xVA-style portfolio interrogation. Written for quant devs and library architects who must ship maintainable payoff DSLs.
- Derivatives
- Quantitative finance
- Risk management
Options, Futures, and Other Derivatives
Global edition
John C. Hull · 2021 · Pearson
The standard graduate-level derivatives text.
- Derivatives
- Risk management
- Quantitative finance
Cybersecurity in Financial Services: Frameworks and Best Practices
Kevin Mandia · 2018 · John Wiley & Sons
This comprehensive guide addresses the critical intersection of cybersecurity and financial services, offering frameworks and best practices essential for risk managers and technology professionals. It outlines strategies to mitigate risks associated with cyber threats in the financial sector.
- Risk management
- Technology
- Regulation & compliance