Guide to Optimal Operational Risk and Basel II Book

Guide to Optimal Operational Risk and Basel II presents the key aspects of operational risk management that are also aligned with the Basel II requirements. This volume provides detailed guidance for the design and implementation of an efficient operational risk management system. It contains all elements of assessment, including operational risk identification, measurement, modeling, and monitoring analysis, along with evaluation analysis and the estimation of capital requirements. The authors also address the managing and controlling of operational risks including operational risk profiling, risk optimization, cost & optimal resource allocation, decision-making, and design of optimal risk policies. Divided into four parts, this book begins by introducing the idea of operational risks and how they affect financial organizations. This section also focuses on the main aspects of managing operational risks. The second part focuses on the requirements of an operational risk management framework according to the Basel II Accord. The third part focuses on all stages of operational risk assessment, and the fourth part focuses on the control and management stages. All of these stages combine to implement efficient and optimal operational risk management systems. Features: ·Presents the key aspects of operational risk management that are aligned with the BASEL II requirements ·Outlines novel approaches that combine advanced mathematical algorithmic modeling, business intelligence and optimization techniques, and total quality management principles ·Highlights the forward-looking design of practical tools that drive optimal bottom-line results ·Offers practical examples of the approaches with specially designed graphics to enable the visualization of concepts ·Includes a downloadable Web site file containing an advanced software tool that can be used for efficiently designing all steps of operational risk management and provides output results of the book's figure illustrationsRead More