Managing Operational Risk in a Changing World.

Format:

Book

Author/Creator:

Cagan, Penny.

Language:

English

Physical Description:

1 online resource (352 pages)

Edition:

1st ed.

Place of Publication:

Newark : John Wiley & Sons, Incorporated, 2026.

Summary:

Practitioner manual to operational risk blending contemporary challenges with case studies Managing Operational Risk in a Changing World is both a practitioner's manual and a classroom text that blends nearly 40 years of frontline experience with emerging themes that define today's risk landscape, from climate change and ESG to AI, DE&I, cyber.

Contents:

Cover

Half Title Page

Title Page

Copyright

Contents

Acknowledgments

Introduction to Operational Risk Book

Operational Risk at a Crossroads

Chapter 1: The History and Importance of Operational Risk

The Definition of Operational Risk

The Impact of the Barings PLC Unauthorized Trading Event

The Introduction of Basel II and Operational Risk Capital Adequacy

The Language of Operational Risk

Basel III Endgame

Significant Unauthorized Trading Events

Chapter 2: Managing Operational Risk in the New World Order

Managing Through the Great Challenges of Our Time

Managing Operational Risks Associated with Geopolitical Events

Communicating Operational Risks

Interview with Industry Veteran on Managing Operational Risk and Compliance: Mike Silva

Chapter 3: Building the Team for Today and Tomorrow Across the Lines of Defense

Managing Operational Risk Across the Lines of Defense

General vs. Specialist Roles

The Composition of Operational Risk Teams

Interview with Industry Veteran on First-Line Risk Management: Aarona Chou

Chapter 4: Making It Real: Developing a Framework for the Real World

The Operational Risk Framework Is Only as Effective as Its Implementation

Elements of the Framework

Governance

Policies and Procedures

Risk Appetite

Key Risk Indicators

Loss Data

Risk and Control Assessment

Scenario Analysis

Issue Management

Monitoring and Reporting

Culture and Awareness

Chapter 5: Managing Operational Risk Appetite and Key Risk Indicators

Definitions

Considerations When Managing Risk Appetite

Risk Appetite Framework

Integration with Operational Risk Program Components

Chapter 6: Developing and Deploying Risk Assessments

Risk and Control Self-Assessment Overview.

Governance: Defined Roles and Responsibilities

Communication Plan

Leveling Up: Determining Risk Assessment Units

The Perspective: Top Down and Bottom Up

Technology Enablement

Methodology: Rating Risks and Controls

Process Mapping

The Trigger-Based Approach

Remediation

Reporting on the Results

Chapter 7: Internal and External Loss Data

Types of Loss Data

Roles and Responsibilities

Framework and Methodology

Internal Loss Data

Stage 1: Identify

Stage 2: Assess

Stage 3: Mitigate

Stage 4: Monitor

Stage 5: Report

External Data

Citibank Revlon Bond Case Study

Chapter 8: Setting Up the Guardrails: Operational Risk Governance

Risk Culture

Training

Conduct Risk

Policies and Frameworks

Risk Committees

Interview with Industry Veteran: Maureen Day

Wells Fargo Pays USD 7.57 Billion in Penalties and Redress Over Retail Customer Violations

Chapter 9: The Fourth Line: Managing Regulatory Risks

The Regulatory Climate

Managing Regulatory Relationships

Tracking Regulatory Changes

Regulatory Expectations

The Four Lines of Defense Model

Seeking Help

Confidential Supervisory Information

Interview with Industry Veteran on Managing Regulatory Risk: Tom Balogh

Chapter 10: It Could Happen Here: On Developing Scenarios

The Scenario Program

The Scenario Framework

Governance and Framework

Preparation

Facilitation

Scenario Workshop

Reporting and Alignment

Scenario Examples

Interview with Industry Veteran on the Use of Scenarios: Evan Sekeris

Chapter 11: Know Your Process: Managing Execution Risks

Managing Through the Operational Risk Framework

Risk Appetite and Key Risk Indicators

Loss Data, Incidents, Escalations, and Issue Management

Risk and Control Assessment.

Scenario Analysis

Payments

Boeing Case Study

Citigroup Fat Finger Case Study Courtesy of IBM

Chapter 12: Managing Change, and Product and Service Risk

Change Management

Lifecycle

Change Initiative Risk Assessment

Waterfall vs. Agile

Success Criteria

Products and Services Change Initiatives

US Regulatory Guidance

Chapter 13: Managing Data Risk, AI, and Machine Learning

Data Risk Management Framework

Governance and Policies and Procedures

Risk and Control Assessments and Maturity Assessment

Cultural Awareness

AI and Machine Learning

Data Is Foundational to AI and Machine Learning

AI-Specific Operational Risks

Using AI to Manage Risk

Interview with Industry Veteran on Data and Machine Learning: Jae Kang

Chapter 14: Managing Cyber Risk

A Tale of Two Attacks

Cyber Frameworks

Aligning NIST to an Operational Risk Framework

Strong Cyber Practices

Interview with Industry Veteran: Alicja Cade

United Healthcare Case Study Courtesy of IBM

Chapter 15 Managing Third-Party Risk

Third-Party Risk Management Framework

Planning (Including Governance

Due Diligence and Third-Party Selection

Contract Negotiation

Ongoing Monitoring

Termination

Interview with Industry Veteran: Jeannie Pumphrey

Chapter 15: Managing Third-Party Risk

Chapter 16: Managing Fraud

Managing Internal and External Fraud

Fraud Risk Management Frameworks.

JPMorgan London Whale Case from ORX: An Example of Internal Fraud

Garda World Robbery Case Study from ORX: Example of an External Fraud

Chapter 17: Managing Business Resilience

Resilience Framework

Managing Climate Risk

Index

EULA.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

1-394-42162-1

1-394-42163-X

OCLC:

1588134183