000			03419nam a22001937a 4500
020			_a9781119841357
041			_aENG
082			_a658.155 _bGRI
100			_aGrimwade, Michael.
245			_aTen laws of operational risk : _bunderstanding its behaviours to improve its management/ _cMichael Grimwade.
260			_aUnited Kingdom: _bJohn Wiley & Sons, Ltd., _c2022.
300			_axx, 396 pages : _billustrations ; _c24 cm.
504			_aIncludes Index.
505			_aT︣︣en laws of operational risk; Patterns in the behaviour of operational risk; The occurrence and severity of loss events; Concentration and systemic operational risk events (SOREs); Homeostasis, risk transference, transformation and conservation, and active risk taking; Three taxonomies: inadequacies or failures, impacts and causes; Conclusions how and why; Operational risk management tools designed for success; Defining and cascading operational risk appetites; Risk & control self- assessments; Scenario analysis; Operational risk capital modelling; Stress testing; Reverse stress testing and the transfer of risk via insurance; Day-to-day operational risk management; Prediction of the future behaviours of operational risk; Identifying emerging risks; Predictions of the future behaviours of operational risk in response to four emerging threats; Conclusions and operational risk strategy
520			_aUnlike Credit and Market Risk, Operational Risk is lacking an overarching theory as to how and why Operational Risk losses occur. This book not only provides this theory but goes onto apply it both to the redesign of the profession's existing tools and to make predictions as to how Operational Risk will behave in the future. The book is divided into three parts. The first section analyses Operational Risk loss data that has been systematically collected to identify patterns and trends. It then defines Ten Laws to explain these behaviours. The first five laws describe individual events, whilst the remaining five relate to groups of losses suffered by either individual firms or the industry as a whole. This section also includes taxonomies for causes, events and impacts. It concludes by assessing the effectiveness of these laws in explaining the observed patterns and trends. Section 2 applies the Ten Laws to the redesign of the profession's tools. Despite these tools evolving over the last three decades, through trial and error, they remain a source of widespread dissatisfaction. Systematically utilising the Ten Laws resolves many of the framework issues with which practitioners have struggled, such as, identifying predictive Key Risk Indicators. As it is emerging risks that are habitually cited as keeping CROs awake at night, the last section sets out a structured approach for their identification. It then applies the Ten Laws to make systematic predictions as to the future behaviour of Operational Risk in response to four key emerging risks: Pandemics, Climate Change, Cyber-Crime, AI and Machine Learning. The book concludes by considering how the various tools should be integrated into a holistic Operational Risk strategy to provide commercial value by supporting firms to stay within appetite, both now and in the future, grow their businesses both quickly and safely, and meet their stakeholders' expectations
650			_aBusiness & Economics
650			_aRisk management
942			_2ddc _cBK
999			_c23868 _d23868