Risk Management Lesson 10: Operational Risk

In this last lesson, we deal with Operational Risk, a very important risk for banks. Unfortunately, its treatment in the Basel framework is not at all satisfactory. We will see why.
Topics:
- Definition of Operational Risk
- Characteristics of Operational Risk
- Basic Indicator Approach
- Standardized Approach.
If you are interested in more advanced approaches, I am glad to suggest one of my papers (joint with Prof. N.N. Taleb). More references can be found in our bibliography there: ssrn.com/abstr...

[@pradeepbhatnagar4848]

Innovative and Informative Lecture.Thanks

[@daltinillc7182]

Thanks for the lesson. Given the unpredictable nature of this risk, would you consider it controllable, hence a good measure of a business managers performance?

[@nashkmr]

Thanks for the great video, the audio is unclear sometimes.

[@TheLogicofRisk]

Yes, I know, but these were live classes, not meant to be actually recorded. This is the best I could do at the time with my laptop.

[@karabomokhari6090]

Thnx for the great video it was very useful.
I'd like to knw what is the difference between operational risk by nature n those that are not by nature

[@rawanderer4737]

Informative. Thanks

[@bechikhnaoufel3395]

Great video, it was useful. How about operational risk indicators used? stress testing and scenarios analysis?

[@TheLogicofRisk]

Not covered in this basic course.

[@cIynamen]

Thanks for the lessons!