Operational Risk ManagementGirling, P. X. (2022, February). Operational risk management (2nd ed.). Wiley.
Read Chapter 3: The Operational Risk Framework.
This chapter introduces the important elements that are recommended for an operational risk framework. These elements include the foundations of governance, risk appetite, culture and awareness, and policy and procedure; the building blocks of data collection including data loss, risk and control self-assessment, scenario analysis, and key risk indicators; and the final capstones of calculation of capital and reporting.
Read Chapter 4: Operational Risk Governance.
This chapter addresses the regulatory requirements for operational risk governance and provides alternative governance approaches that can be adopted. The roles and responsibilities of the first, second, and third lines of defense are outlined, as well as the roles and responsibilities of boards of directors, committees, and senior management. Finally, validation and verification requirements are introduced and explained.
Read Chapter 10: Risk and Control Self-Assessment.s
This chapter explores the role of risk and control self-assessment (RCSA) in the operational risk framework. Various RCSA methods are described and compared, and several scoring methodologies are discussed. RCSA challenges and best practices are explained, and the practical considerations that can help ensure the success of an RCSA program are outlined.
