This article evaluates whether US large bank operational risk capital requirements are forward-looking, sensitive to … banks' current exposures, and allow for risk mitigation, and discusses modifications that could bring regulation closer to … standardized approach for operational risk put forward by the Basel Committee, and CCAR. Unless modified, the new standardized …

This paper discusses the definition of operational risk laid down by the second Basel accord. The loss event types … along with examples provided by Basel committee are put down to clarify the definition. Recent examples of operational risk …

same time, it has complicated banking regulations and its consequent risk management mechanisms. The GFC and consequent … Basel III have accentuated the importance of operational risk management manifold by adding new perspectives to the concept … which was not identified properly under sophisticated and graded risk assessment processes in the years before the financial …

requiring banks to calculate operational risk capital, and disclose qualitative and quantitative information. Using a difference …-in-differences setup featuring partial US implementation relative to full EU adoption, we find that the introduction of operational risk …

This paper analyses key documents of Basel Committee which concern operational risk governance and identifies the … interconnectedness between risk source, type of the event leading to losses, loss type and its distribution by business lines. The … comparative characteristic of the main operational risk governance stages is provided and the relationships between governance …

The Advanced Measurement Approach (AMA) to operational risk capital is vulnerable to gaming, complex, and lacks … comparability. The Standardized Measurement Approach (SMA) to operational risk capital lacks risk sensitivity and is unlikely to be …

This paper proposes an alternative framework to set banks' operational risk capital, which allows for forward … vulnerability to gaming of the AMA and the lack of risk-sensitivity of BCBS's new standardized approach for operational risk …

This paper proposes an alternative framework to set banks’ operational risk capital, which allows for forward … vulnerability to gaming of the AMA and the lack of risk-sensitivity of BCBS’s new standardized approach for operational risk …

papers on operational risk in financial institutions, covering the period from 1998 to 2014. In doing so, different lines of … research, as well as in risk measurement processes by financial institutions. Finally, this paper highlights the research gaps … in operational risk and outlines recommendations for further research. …