Rethinking Basel II for Operational Risk
Speaker:
Tony Peccia (Citi Group)
Date and Time:
Saturday, March 27, 2010 - 9:00am to 9:50am
Location:
Fields Institute, Room 230
Abstract:
The capital charge in most financial institutions is largely determined by actuarial models that provide little insights into the actual risk factors that drive the operational risks exposure and remains an abstraction for most business managers. Operational risk reporting largely consists of reporting losses after the fact to mostly those that were actively involved in resolving the loss event, accompanied by an abstract capital amount and either aggregated RCSA/KRI information or pages and pages of detailed risk issues that are not actionable to the recipients of the report. So what to do?