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The necessity of operational risk management and quantification

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Author Info
Barbu Teodora Cristina () (The Academy of Economic Studies, The Faculty of Finances, Insurances, Banks and Stock Exchange)
Olteanu (Puiu) Ana Cornelia () (The Academy of Economic Studies, The Faculty of Finances, Insurances, Banks and Stock Exchange)
Radu Alina Nicoleta () (The Academy of Economic Studies, The Faculty of Finances, Insurances, Banks and Stock Exchange)
Abstract

Beginning with the fact that performant strategies of the financial institutions have programmes and management procedures for the banking risks, which have as main objective to minimize the probability of risk generation and the bank’s potential exposure, this paper wants to present the operational risk management and quantification methods. Also it presents the modality of minimum capital requirement for the operational risk. Therefore, the first part presents the conceptual approach of the operational risks through the point of view of the financial institutions exposed to this type of risk. The second part describes the management and evaluation methods for the operational risk. The final part of this article presents the approach assumed by a financial institution with a precise purpose: the quantification of the minimum capital requirements of the operational risk.

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File URL: http://steconomice.uoradea.ro/anale/volume/2008/v3-finances-banks-accountancy/118.pdf
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Publisher Info
Article provided by University of Oradea, Faculty of Economics in its journal The Journal of the Faculty of Economics - Economic.

Volume (Year): 3 (2008)
Issue (Month): 1 (May)
Pages: 661-667
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ora:journl:v:3:y:2008:i:1:p:661-667

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Related research
Keywords: Operational risk; operational risk profile; standard approach; gross income; administrative general expenses;

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Find related papers by JEL classification:
G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages

References listed on IDEAS
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  1. Marco Moscadelli, 2004. "The modelling of operational risk: experience with the analysis of the data collected by the Basel Committee," Temi di discussione (Economic working papers) 517, Bank of Italy, Economic Research Department. [Downloadable!]
  2. Patrick de Fontnouvelle & Eric Rosengren & John Jordan, 2004. "Implications of alternative operational risk modeling techniques," Working Papers 1, Federal Reserve Bank of Boston. [Downloadable!]
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This page was last updated on 2009-11-20.


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