From Incidents Handling to Suggest a Framework for Better Control of Operational Risk

Abstract

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.\r\n\r\n\r\nChapter 1 is the object and approach to this paper.\r\n\r\nChapter 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.\r\n\r\nChapter 3, outlook in the recent scandals to echo the importance of internal control as well as operating risk.\r\n\r\nIn 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.\r\n\r\nIn 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.\r\n\r\nFinally in chapter 6, making a conclusion and recommendation to wish more feedback in strengthen the control of operation risk.