Operational Risk Mitigation: Strategies and Tools

Giuliana Birindelli and Paola Ferretti

Chapter Chapter 5 in Operational Risk Management in Banks, 2017, pp 111-132 from Palgrave Macmillan

Abstract: Abstract Banks adopting advanced measurement approach have the possibility of reducing the operational risk capital requirementCapital requirement in presence of insuranceInsurance and other risk transfer mechanismsOther risk transfer mechanisms as they demonstrate that a noticeable risk-mitigating effect is achieved and the mitigation techniques comply with specific standards. In this chapter we describe the regulatory framework of the operational risk mitigation techniquesOperational risk mitigation techniques and we analyse, particularly for insurance, the main operational issues of their use as operational risk mitigants, highlighting the most relevant impacts on the banks’ operational risk management. We also describe the most widespread instruments banks may use: both traditional and innovative ones.

Keywords: Operational Risk Mitigation; Insurance policiesInsurance Policies; coverageCoverage; EBAEuropean Banking Authority (EBA); Recovery Policies (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-1-137-59452-5_5

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DOI: 10.1057/978-1-137-59452-5_5

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