Operational risk management is attracting the attention of
academics and professionals worldwide. Academics are interested in
this topic because it provides opportunities for the application of
sophisticated statistical techniques, as well as lucrative
opportunities for consultancy work and challenging questions on how
to measure operational risk. For the practitioners, acquiring
knowledge of operational risk is more than mere luxury as major
banks all around the world have to be Basel 2 compliant within the
next two years. Moreover, operational losses have, since the
notorious collapse of Barings Bank, been haunting banks' top
management, prompting a strive to devise measures that can reduce
operational losses and the risk of business collapse. Indeed, it
has been demonstrated that an operational loss event could lead to
a fall in the market value of the affected firm that is greater
than the loss itself. This new book is accessible to the average
banker, while providing a general survey of the work on operational
risk that academics will find invaluable.
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