Operational Risk Management

ARIANE CHAPELLE, PHD, is Associate Professor (Honorary Reader) at University College London for the course 'Operational Risk Measurement for Financial Institutions' and is a Fellow of the Institute of Operational Risk and a trainer for the Professional Risk Managers' International Association (PRMIA), for whom she designed the Certificate of Learning and Practice in Advanced Operational Risk Management. She is a former holder of the Chair of International Finance at the University of Brussels. She has been active in operational risk management since 2000 and is a former head of operational risk management at ING Group and Lloyds Banking Group. Dr. Chapelle runs her own training and consulting practice in risk management. Her clients include Tier 1 financial organisations and international financial institutions.

• About the Author xiForeword xiiiPreface xvIntroduction xixPART ONE Risk Identification 1CHAPTER 1 Risk Identification Tools 3CHAPTER 2 Scenario Identification Process 13CHAPTER 3 Risk Definition and Taxonomy 19CHAPTER 4 Risk Connectivity and Risk Networks 29PART TWO Risk Assessment 35CHAPTER 5 Risk Appetite 37CHAPTER 6 Risk and Control Self-Assessments 51CHAPTER 7 Scenario Assessment 63CHAPTER 8 Regulatory Capital and Modeling 77PART THREE Risk Mitigation 93CHAPTER 9 Operational Risk Governance 95CHAPTER 10 Risk Mitigation 105CHAPTER 11 Root Cause Analysis and Action Plans 115CHAPTER 12 Conduct and Culture 119PART FOUR Risk Monitoring 127CHAPTER 13 Incident Data Collection 129CHAPTER 14 Key Risk Indicators 141CHAPTER 15 Risk Reporting 157CHAPTER 16 Valuable ORM 171PART FIVE Rising Operational Risks 179CHAPTER 17 Project Risk Management 181CHAPTER 18 Information Security Risks 193CHAPTER 19 Operational Risks in Cryptocurrencies 207CHAPTER 20 Resilience and Reputation 221Conclusion 231Index 235