This new book is an invaluable guide to operational risks and their mitigation. Divided into four sections it begins by identifying 12 factors which characterise operational risk. The first section examines operational risk in the contexts of merchant, corporate, investment and private banking and the insurance industry. The second demonstrates how operational risk can be managed and controlled and examines cases of operational failure, including Credit Lyonnais and NatWest Markets. The third identifies legal risk including cross-border conflicts of law, compliance and taxation issues and environmental factors. The final section assesses the risk in payments and settlements including dematerialisation, the role of IT solutions, handling intraday exposure and delivery vs payment issues.
Every financial institution should understand and protect against these risks and this unique and timely guide will ensure you establish an effective strategy for managing operational risk.