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A Risk Category Comes of Age: Operational hazards, newly defined, get the full management treatment.

Securities Industry News

| August 07, 2006 | Sisk, Michael | COPYRIGHT 2006 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Operational risk management has come a long way in a few years. At the start of the decade, financial industry executives were hard-pressed to precisely define a concept that seemed far more vague than the largely familiar and quantifiable categories of credit and market risk. Today, a series of regulatory initiatives, the consequences of late trading and other market scandals, and a sensitivity toward disaster planning heightened by the Sept. 11, 2001 terrorist attacks put the operational on a par with the longer-established disciplines of risk management.

It was a necessity, contends Herve Geny, an SVP and risk management specialist at MoodyOs Investors ...

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