由帶領處理三件銀行作業疏失看作業風險 / The initial idea to this paper is from the experience of leading the taskforces in real operating losses which included a series of plans in root cause identification, control gaps assessment, financial impact analysis, and corrective actions implementation. Secondly, a snapshot on the recent famous scandals in the world to prove the control breakage is from the similar factors but might be with different combinations. The similar factors could be concluded due to the definition of Operational Risk is clearly provided by the Basel. Thirdly, from the viewpoint of new regulation to highline the environment did change to affect the competition by different capital reserve. Finally, try to provide a comprehensive internal framework in a Bank. The content is organized to descript below per chapter. Chapter 1 is the object and approach to this paper. Chapter 2 is to brief from environment overview to highline the impact of capital charge requirement for operating risk and effect of internal control on financial reporting. Chapter 3, outlook in the recent scandals to echo the importance of internal control as well as operating risk. In chapter 4, three significant incidents from taking a lead to conduct a series of investigation taskforces, an overall picture from inside out to address the failure in operating error, the financial impact, and corrective actions plan. In chapter 5, it is to provide a design of the internal control framework, as well as the implementation in daily operation from end to end. Finally in chapter 6, making a conclusion and recommendation to wish more feedback in strengthen the control of operation risk.

The Basel Committee was established as the Committee on Banking Regulations and Supervisory Practices.There was a strong recognition within the Committee of the overriding need for a multinational accord to strengthen the stability of the international banking system and to remove a source of competitive inequality arising from differences in national capital requirements. A capital measurement system commonly referred to as the Basel Capital Accord (or the 1988 Accord) was released to banks in July 1988. In 2000, the Committee issued Consultative Document (CP2) designed to incorporate operational risk. In June 2004, the Committee published the document ¡§International Convergence of Capital Measurement and Capital Standards, a Revised Framework¡¨ (widely known as Basel II). This study investigated 3 banks including large-sized, middle-sized and small-sized in Taiwan. And Archival Research and Interviews were used to analyze the regulatory treatment of Operational Risk in the New Basel Capital Accord. In conclusion, this study recommends some appropriate measures to bankers in accordance with the New Basel Capital Accord. Furthermore, several suggestions are also proposed to bankers and the supervisors.

In order to cope with the operational risk resulting from drastic changes of financial market and diversified financial products (e.g. product design, training for sales personnel, risk management, etc.), Basel Committee on Banking Supervision¡]BCBS¡^decided that, under the minimum capital requirement, the banking groups are requested to increase the operational risk capital requirement, which will be implemented in the banking business by the end of 2006. The operational risk, defined by Basel Committee on Banking Supervision¡]BCBS¡^is ¡§the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events¡¨. Although the scope of the operational risk has been narrowed down, the definition is still ambiguous to the banking groups. The operational risk needs to be clearly distinguished from the credit risk and the market risk such that categorization and quantification of the banking business can be realized. In fact, besides the natural disasters and irresistible causes, most of operational risk results from the failure of internal control and policy execution rather than from causes of systemic risks. Therefore, it is inappropriate to apply the same risk coefficient to the banking groups without taking their operation quality and scale into consideration. It is also questionable that the capital requirement can entirely offset the financial loss caused by the operational risk. In order to minimize the loss from the operational risk, risk mitigation should be applied. The strategy is to collect the historical data and information to establish a database, which is commonly found in the following four approaches in performing the operational risk capital requirement¡GBasic Indicator Approach ¡]BIA¡^, Standardized Approach¡]SA¡^, Alternative Standardized Approach¡]ASA¡^, Advanced Measurement Approaches¡]AMA¡^. Hence, it is inevitable that the banking groups need to invest substantial amount of manpower and capital, which could become a huge burden to the banking groups but is the price to pay to arouse the banking groups¡¦ attention to reinforce the risk management and evaluation. Establishment of the systems and execution of the policies will not always be impeccable and there will always be room for discussion and modification. Nevertheless, the ultimate goal for the management is to well-operate the banking groups and maximize the shareholders benefit.

In oil/gas and chemical industries, dynamics is one of the most essential characteristics of any process. Time-dependent response is involved in most steps of both the physical/engineering processes and the equipment performance. The conventional Quantitative Risk Assessment (QRA) is unable to address the time dependent effect in such dynamic processes. In this dissertation, a methodology of Dynamic Operational Risk Assessment (DORA) is developed for operational risk analysis in oil/gas and chemical industries. Given the assumption that the component performance state determines the value of parameters in process dynamics equations, the DORA probabilistic modeling integrates stochastic modeling and process dynamics modeling to evaluate operational risk. The stochastic system-state trajectory is modeled based on the abnormal behavior or failure of the components. For each of the possible system-state trajectories, a process dynamics evaluation is carried out to check whether process variables, e.g., level, flow rate, temperature, pressure, or chemical concentration, remain in their desirable regions. Monte Carlo simulations are performed to calculate the probability of process variable exceeding the safety boundaries. Component testing/inspection intervals and repair time are critical parameters to define the system-state configuration; and play an important role for evaluating the probability of operational failure. Sensitivity analysis is suggested to assist selecting the DORA probabilistic modeling inputs. In this study, probabilistic approach to characterize uncertainty associated with QRA is proposed to analyze data and experiment results in order to enhance the understanding of uncertainty and improve the accuracy of the risk estimation. Different scenarios on an oil/gas separation system were used to demonstrate the application of DORA method, and approaches are proposed for sensitivity and uncertainty analysis. Case study on a knockout drum in the distillation unit of a refinery process shows that the epistemic uncertainty associated with the risk estimation is reduced through Bayesian updating of the generic reliability information using plant specific real time testing or reliability data. Case study on an oil/gas separator component inspection interval optimization illustrates the cost benefit analysis in DORA framework and how DORA probabilistic modeling can be used as a tool for decision making. DORA not only provides a framework to evaluate the dynamic operational risk in oil/gas and chemical industries, but also guides the process design and optimization of the critical parameters such as component inspection intervals.

銀行業的業務本質為由風險中獲取報酬，銀行經營過程亦存在許多不同的風險。近年來，金融市場的高度變動、新資訊科技的不斷應用、金融產品與服務的增加、財務工程之應用，甚或銀行業間無法停止之整合與購併，目的皆為使銀行經營朝向更好的方向不斷精進。然而，現象之另一面，亦代表更多複雜的跨單位、跨業務之流程規劃、資訊系統整合與內部人員管理，這使得妥善管理作業風險成為銀行業一項迫切重要的工作。本研究目的即在於瞭解銀行面對作業管理議題及相關管理層面之現況，探討銀行進行作業風險管理時可能遭遇之問題，並針對可能問題提出建議與看法，以健全銀行經營，確保股東及利害關係人之權益。 研究分析之過程，首先了解作業風險的定義，其次藉由風險管理最佳實務與策略運作五階段建立作業風險管理架構體系。而後，藉由個案研究之方式，分析個案銀行之作業風險管理流程與運行方式之狀況，瞭解個案銀行在作業風險管理模式下所投入之資源與人力，以及運作情況，並發掘作業風險管理過程中可能存在之問題。 由本研究探討之作業風險管理模式與當前問題中，可以發現：政府法令與主管機關之重視，對於各銀行之作業風險管理是莫大的動力；銀行善用人力資源管理之相關技巧，將有助於作業風險管理；清楚地認知作業風險管理之方向與組織架構，則有助於減少部門功能衝突，以及增加作業風險管理資源的使用效率。

The purpose of this research is to examine whether U.S. banks that announced material operational risk loss (oprisk loss) events can still enjoy a lower cost of capital. I use the bank's credit rating as a proxy for the cost of debt capital, and the actual oprisk loss amounts announced by publicly traded U.S. banks for $10 million and over during the period 1998 to 2012 compiled from my own database. I also investigate whether the type of oprisk loss event and business line in which the loss event was incurred matter to credit rating agencies. I perform additional analysis to determine whether a downgrade in a bank's credit rating associated with the announcement of a material oprisk loss amount impacts the bank's reputation. This study focuses on the U.S. banking industry because of the increased market and regulatory scrutiny of oprisk losses; especially during the financial crisis of 2008 to 2010. The logistic analysis shows that banks' announcement of material oprisk loss amount is associated with a decline in credit ratings. The findings did not support the position that the type of loss event and business line in which the loss event was incurred matter to credit rating agencies. The results for the event study show that a downgrade in a bank's credit rating associated with an announcement of a material loss amount has a robust, statistically significant negative stock market reaction. Furthermore, the results reveal that the losses in market value significantly exceed the announced loss amounts associated with credit rating downgrades, indicating reputational loss to the banks. This research was limited to announcements of material oprisk loss amounts by U.S. banks publicly traded on major U.S. stock exchanges. Investigating the impact of announcements of material oprisk loss amounts by financial institutions publicly listed on major stock exchanges worldwide provides an avenue for future research. This study contributes to the literature on operational risk and the cost of debt capital as reflected in credit ratings by providing empirical evidence of the impact of oprisk losses on credit ratings of U.S. banks.

The thesis "Operational risk management in financial institution" is focused on description, types of measurements, methods of control, analysis and possibilities for reducing of operational risk. The first part describes and defines operational risk and discusses the Basel accords. Next part is focused on operational risk management, methods reducing operational risk and there is also described the organizational structure of the bank associated with operational risk. The thesis also describes the methods of calculating of capital requirements and methods measuring operational risk. The practical part describes the most significant operational risk events and there is also a comparison analysis of calculation of capital requirement the specific bank.

Academic literature is limited on how to coordinate the compliance and operational risk functions in organisations. The functional overlap between these two functions in financial institutions, such as banks, may result in oversight gaps or unintentional duplication. This paper describes a study on the overlap between these two functions in the second line of risk and control defence. A number of documents were analysed including relevant Basel Committee documents; South African banking legislation and regulations; integrated annual results, risk and capital reports of the four largest South African (the Big Four) banks; as well as internal operational risk and compliance documents of one of the Big Four banks. Based on this study, regulatory and practice based guidelines are proposed, which may be used to improve the efficiency of the compliance and operational risk functions in banks.

Academic literature is limited on how to coordinate the compliance and operational risk functions in organisations. The functional overlap between these two functions in financial institutions, such as banks, may result in oversight gaps or unintentional duplication. This paper describes a study on the overlap between these two functions in the second line of risk and control defence. A number of documents were analysed including relevant Basel Committee documents; South African banking legislation and regulations; integrated annual results, risk and capital reports of the four largest South African (the Big Four) banks; as well as internal operational risk and compliance documents of one of the Big Four banks. Based on this study, regulatory and practice based guidelines are proposed, which may be used to improve the efficiency of the compliance and operational risk functions in banks.

Thesis (MBA)--Stellenbosch University, 2004. / Some digitised pages may appear illegible due to the condition of the original hard copy / ENGLISH ABSTRACT: The complexity of modern business requires that all managers be, at least, partially responsible for strategic risk management. Therefore, all managers must have an awareness of the business direction of the organisation as a whole; that is, the corporate and business strategy. Companies embark on this journey to ensure their future existence. In this regard, having a risk management strategy allows a company to visualise and aim for its future, because such strategy guides decisions on the allocation of resources throughout the organisation. The risk management strategy encapsulates both desired goals and beliefs about what are acceptable and, most critically, unacceptable means of achieving them. To achieve the above, the ineptitude of traditional risk management strategy rarely seems to dictate unique structural solutions. Rather, the crucial factors in the operational risks processes are most often those of execution and continuous adaptation; of getting things done, and staying flexible. In addition, and to a very large extent, this means going far beyond strategy, to issues of organising structure, people, and the like. Given the historical development arising from the academic and insurance background and its inefficacy in dealing with the array of risks in the fast changing business environment, it is therefore important that risk management be embedded in every aspect of the management structure in an organisation for it to deal holistically with all risks facing it. The major challenge, however, is how to free risk management from the specialist "silos" of academia and insurance that have hindered its growth since inception. The approach of this research study is motivated by a desire to address this challenge. To do so, it employs two scientific research methods, first, to provide basic knowledge of concepts in view of expanding the existing basic knowledge and contribute to the literature of risk management at large by describing its evolution into a modern risk management now known as enterprise risk management, and, second, to use the applied research method in focusing on the specific problem of knowing how to translate theoretical aspects of risks management into business solutions within the context of managing operational risks. This is done by illustration using South African Airways as a Case Study. In view of the above, the aim of this research study is to show how practically to liberate risk management from the clutches of academia and insurance and to give risk management strategic significance at senior management level and tactical significance at operational level within the aforementioned modern technique of enterprise risk management. / AFRIKAANSE OPSOMMING: Die ingewikkeldheid van moderne besigheid vereis dat alle bestuurders ten minste gedeeltelik vir strategiese risikobestuur verantwoordelik is. Daarom moet alle bestuurders bewus wees van die besigheidsrigting van die organisasie as geheel; dit is, die korporatiewe en besigheidstrategie. Maatskappye pak dié reis aan om hul bestaan in die toekoms te verseker. 'n Risikobestuurstrategie stel 'n maatskappy in staat om die toekoms te visualiseer en daarheen te mik, want dié strategie lei besluite oor die toekenning van hulpbronne regdeur die maatskappy. Die risikobestuurstrategie behels die verlangde doelwitte, en die oortuigings van wat aanvaarbaar en wat, uiters belangrik, onaanvaarbaar is om die doelwitte te bereik. Om die bogenoemde te bereik wil dit voorkom of die ongepastheid van tradisionele risikobestuurstrategieë selde unieke strukturele oplossings voorskryf. Die beslissende faktore in bedryfsrisiko-prosesse is gewoonlik uitvoering en voortdurende aanpassing; om dinge te laat gebeur en buigsaam te bly. Daarmee saam, en tot 'n baie groot mate, beteken dit om verby die strategie te beweeg na aangeleenthede van struktuur, mense en dies meer. Gegewe die historiese ontwikkeling van die akademiese en versekeringsagtergrond en die onvermoë om 'n verskeidenheid risiko's in 'n vinnig veranderende sake-omgewing te hanteer, is dit belangrik dat riskobestuur in elke aspek van die bestuurstruktuur van 'n organisasie vervat word. Dit sal verseker dat die organisasie dreigende risiko's holisties benader. Die grootste uitdaging is egter hoe om risikobestuur los te maak van die "spesialissilas" van die akademie en versekering, wat die groei daarvan sedert sy ontstaan belemmer het. Die benadering van dié navorsingstudie word gemotiveer deur 'n behoefte om dié uitdaging aan te pak. Om dit te doen, word twee wetenskaplike navorsingsmetodes gebruik. Eerstens, om basiese kennis te verskaf oor konsepte om die bestaande basiese kennis uit te brei en by te dra tot die literatuur van risikobestuur. Dit word gedoen deur die evolusie hiervan tot moderne risikobestuur, nou bekend as ondernemingsrisikobestuur, te beskryf. Tweedens, om die toegepaste navorsingsmetode te gebruik om te fokus op die spesifieke probleem van hoe om teoretiese aspekte van risikobestuur oor te skakel na besigheidsoplossings in die konteks van die bestuur van bedryfsrisiko's. Dit word gedoen deur die Suid-Afrikaanse Lugdiens as gevallestudie te gebruik. In die lig van die bogenoemde, is die doelwit van dié navorsingstudie tweeledig. Eerstens, om aan te toon hoe om risikobestuur te bevry van die kloue van die akademie en versekering. Tweedens, om die belangrikheid van strategiese risikobestuur op senior bestuursvlak en taktiese risikobestuur op bedryfsvlak uit te lig binne die voorgenoemde moderne tegniek van ondernemingsrisikobestuur.