Managing operational risk in relation to internal capital adequacy assessment process (ICAAP)

Rajat Baijal
Additional contact information
Rajat Baijal: Managing Director–Global Head of Enterprise Risk, Cantor Fitzgerald, UK

Journal of Securities Operations & Custody, 2017, vol. 9, issue 2, 185-191

Abstract: As banks struggle to quantify operational risk in relation to their internal capital adequacy assessment process (ICAAP), it becomes critical to align the various elements of the risk framework to make an informed judgement. This is where internal processes such as the risk and control self-assessment (RCSA), risk event management and scenario analysis play a key role in understanding and quantifying operational risk. When combined, outputs from each of these individual processes provide a powerful input for operational risk capital calculation. Additionally, the culture and conduct of the firm will play a pivotal role in implementing a robust framework, which further assists the management in meeting the requirements of the ICAAP.

Keywords: operational risk; ICAAP; scenario analysis; conduct risk; loss distribution (search for similar items in EconPapers)
JEL-codes: E5 G2 K22 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hstalks.com/article/4139/download/ (application/pdf)
https://hstalks.com/article/4139/ (text/html)
Requires a paid subscription for full access.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aza:jsoc00:y:2017:v:9:i:2:p:185-191

Access Statistics for this article

More articles in Journal of Securities Operations & Custody from Henry Stewart Publications
Bibliographic data for series maintained by Henry Stewart Talks ().