 COMPARATIVE ANALYSIS OF OPERATIONAL RISK MEASUREMENT TECHNIQUESDilek Teker
No 1020, International Trade and Finance Association Conference Papers from International Trade and Finance Association Abstract: The banking risks have been known as a total of credit and market risks for a long time. The banking sector has come across the operational risk by the occurance of financial crises in recent years. Operational risk may simply be defined as all risks other than credit and market risks, banks incur in their operations. On the other hand, the Basel Comittee defines operational risk as the loss resulting from inadequate or failed internal processes, people, systems or external events. By the official announcement of Basel II in June 2004, measuring and managing operational risk and including in banks'capital adequacy computations became one of the hot topics in banking sector. The aim of this research is to present factors resulting operational risk and examine various operational risk measurement models and compare the level of efficiency of the underlying models in terms of capital requirement. Furthermore, each model is applied on a bank operating currently in the Turkish banking sector. The results support that the use of advanced risk measurement models reduces the capital needs of the bank under examination.Presented at the 15th International Conference,Istanbul, Turkey, May 2005. Date: 2005-05-18 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bep:itfapp:1020 Access Statistics for this paper More papers in International Trade and Finance Association Conference Papers from International Trade and Finance Association |
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