Operations Risk--a form of Operational Risk, is becoming increasingly important as more and more sophisticated products and the use of those products occurs in the financial services industry. Outsourcing, including overseas outsourcing, is changing the structure of firms and particularly operations teams. Thus understanding the existing and the changing risk environment in operations functions and its impact on operational risk is centrally important today. The book focuses on areas such as technology risk, people risk, and settlement risk, examining the dangers that lurk within different organisations. Case studies throughout the book illustrate the way in which risk can become magnified and ultimately become a serious danger to the businesses concerned. The reader is challenged throughout the book to interpret given situations in Operations Risk so as to understand the impact of the risks and devise solutions through a series of exercises included in the relevant chapters. (answers are provided). This “self-test” approach will help reinforce understanding of the detailed material contained throughout the book.

*Offers the knowledge, tools, techniques, and solutions necessary to recognize and evaluate operations risk
*Concise, easy to read format provides practical solutions and techniques that readers can implement tomorrow
*Case studies and "self-test" features ensure practical understanding.

• Front Cover 2
• Operations Risk 5
• Copyright Page 6
• Table of Contents 7
• Introduction 10
• Chapter 1 The operational risk universe 13
  • Post barings 17
  • The influence of BIS 18
  • Operational risk management 18
  • Types of risk 19
• Chapter 2 Defining operations risk in investment and retail banking 20
  • Retail banking 20
  • Managing operations risk in retail banking 21
  • Types of operations risk affecting retail banks 23
  • Customer account errors 24