Article ID: cb853e74b4c0e0994094bbc3dfe57f1878eda1da2b43b5da9e3c86a363cdf3f3
Source ID: regulatory:risk.net
Published At: -
Extraction Method: trafilatura
URL: https://www.risk.net/topics/operational-risk
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Operational risk WHAT IS THIS? Operational risks are those arising from people, processes and systems – the biggest form of exposure for many industries, but one that was neglected by financial firms until the collapse of Barings Bank in 1995. It was added to the Basel capital framework in 2004, but attempts to model operational risk were dealt a heavy blow by the huge, unforeseen losses suffered by banks in the aftermath of the financial crisis. An expert-validated risk assessment framework for bank IT supply chain management The authors propose and validate an expert-based risk assessment framework to manage IT supply chain risks in the banking sector. Red alert: how Nasdaq’s Smarts became surveillance blind spot Software that looks for shifty trades has been asleep on the job, affecting alerts for hundreds of products Op risk data: Pentwater pays up for taking Avis shares for a spin Also: Romania’s Robor cop gets tough on benchmark rigging; Wamco’s cherry-picking squashed. Data by ORX News Operational risk measurement: integrating the amplification effects of reputational risk This paper puts forward a means to measure operational risk losses which integrates reputational and operational risks. From gatekeeper to coach: model risk bids to reinvent itself Model Risk Benchmarking data reveals a function in flux, grappling with resource cuts, AI models, regulatory divergence Anthropic curbs and cost fears spur banks to shop around for AI Risk Live: Banks increasingly wary of reliance on US models amid uncertain geopolitical environment and mounting costs Former MI6 chief urges AI slowdown Risk Live: Other AI firms will be “in exactly the same space” as Anthropic’s Mythos, warns Moore Break down silos to manage geopolitics – risk managers Risk Live: Experts says scenario planning helps identify who has information needed in a crisis AI autonomy may redefine risk management roles Risk Live: Machine validation of autonomous processes may emerge “relatively soon”, EIF risk chief says Banks insure against cyber risk, but rarely claim Risk Benchmarking study finds big banks aggressively negotiating on cost of cover, and seeking offsets to Pillar 2 capital Four in five banks use AI to manage op risks Risk Benchmarking: Cyber risk use cases growing; governance and ROI doubts give some pause Build, or buy: banks still don’t love their GRC vendors Risk Benchmarking study finds a record number of firms reviewing tech provision for top op risks, amid touted wave of AI-led self-builds EU banks welcome high-risk systems breather from delay in AI act But chatbot transparency still applies from August, requiring deployers to disclose use to customers On cyber risk, tech debt is big banks’ top challenge Risk Benchmarking: Fragmented stacks make identifying vulnerabilities harder; manual workarounds increase human errors Half of banks use scenarios to set third-party Pillar 2 capital Risk Benchmarking study finds resilience risk less widely covered than cyber and IT disruption, but more formalised where scenarios exist Portway leaves Barclays, destination unknown Group operational risk head departs after 14 years at firm Second line seeks to stamp its authority on AI risk Risk Benchmarking study finds fragmented accountability for AI risk among banks, and most are short of controls to contain it Everything is connected: Santander’s US CRO shuns siloed thinking Rise of AI intensifies links between fraud, cyber, third-party and other operational risk categories Op Risk Benchmarking 2026: explore the data View interactive charts from Risk.net’s 61-bank study, covering risk appetite breaches, controls, scenario analysis, GRC tech and regulation Op risk data: HSBC hit with $400m external fraud loss Also: China’s unlicensed trading clampdown; SocGen’s insurance mis-selling woes. Data by ORX News Appetite breaches climb for top op risks Risk Benchmarking: Low tolerance and heightened threat environment combine to test banks’ limits for cyber, resilience, third-party risk
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