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Operational risk and regulation

Posted on by aldopuch

 

Impact of Basel III and Dodd-Frank Act

A survey conducted by Chartis Research has revealed that capital adequacy requirements linked to Basel III and the Dodd-Frank Act are expected to be leading sources of regulatory and operational risk management pressures in the immediate future.  The survey which took opinions from financial organisations across the globe also added credit risk and crime mitigation to the list of prime concerns.

The Role and Place of Operational Risk in an Organisation

These results back up the Aon Global Risk management survey which was released earlier this year in which regulatory and legislative changes were listed as the second greatest risk behind economic conditions.  Whilst regulatory pressures undeniably play their part in operational risk the results of these surveys back up our contention that far too often the leaders of financial organisations take a narrower view of operational risk than perhaps they should.

Used wisely, operational risk can be an all-encompassing framework which compliments and enhances risk management and corporate governance.  Rather than being simply a costly reaction to regulation; strong operational risk planning set alongside robust strategies and mitigation can in fact strengthen the financial standing and profitability of an organisation.

If you want to learn more about the latest trends in operational risk you can attend a Eureka Financial course on Operational Risk which explores the best practice in operational risk management, at all stages: from assessment to implementation.

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Eureka Financial offers over 100 public and in-house training courses in banking and finance, corporate finance and M&A, risk management, operations, investments, wealth management, soft skills and management. For more details visit: www.eurekafinancial.com

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