Assessment of Banking Operational Risk

C. Zhang, W. Zhu, S. Yang and J. French

Chapter 13 in New Frontiers in Enterprise Risk Management, 2008, pp 195-208 from Springer

Abstract: The main risks in banking management are credit risk, market risk and operational risk (Oprisk). The British Bankers’ Association (BBA) and Coopers and Lybrand conducted a survey in BBA’s 45 members in 1997 and the report showed that more than 67% of banks considered the oprisks were of more concernment than market risk and credit risk. 24% of banks had suffered more than 100 million pound losses during the three years prior to the survey. The worldwide survey on oprisks by the Basel Committee (2002) showed that respondent banks had reported 47,029 oprisk cases with losses of over 1 million EURs, with each bank experiencing 528 oprisk cases on average. Over the past decade, financial institutions have suffered several large operational loss events leading to banking failures. Memorable examples include the Barings’ bankruptcy in 1995, the $691 million trading loss at Allfirst Financial. Obviously, oprisk is a very serious problem in the banking system at present. These events have led regulators and the banking industry to recognize the importance of oprisk in shaping the risk profiles of financial institutions.

Date: 2008
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-3-540-78642-9_13

Ordering information: This item can be ordered from
http://www.springer.com/9783540786429

DOI: 10.1007/978-3-540-78642-9_13

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().