Book: Enterprise Risk Management: From Incentives to Controls
Author: James Lam
ISBN: 978-1-118-41361-6
Chapter 20 is a short fiction piece. James Lam wrote it as a glimpse of what risk management might look like in the future. It’s set in 2020 at a made-up company called Everlast Financial.
Book: Financial Risk Manager Handbook Plus Test Bank
Author: Philippe Jorion
ISBN: 978-0-470-90401-5
Market risk has VaR. Credit risk has default models. Operational risk? For years it sat in the corner while banks focused on the risks they could price. Jorion’s Chapter 25 makes the case that this was a mistake. Most firm-specific blowups are not pure market or credit events. They are control failures layered on top of trading losses.
Book: Enterprise Risk Management: From Incentives to Controls
Author: James Lam
ISBN: 978-1-118-41361-6
Lam picks up Chapter 14 with capital allocation. Market and credit models are mature. Operational risk models are not one-size-fits-all. Use a blend.
Book: Enterprise Risk Management: From Incentives to Controls
Author: James Lam
ISBN: 978-1-118-41361-6
Operational risk is old. Humans, broken processes, and bad tech have caused losses forever. What changed is enterprise risk management, regulatory capital charges, and the gap between slick market/credit models and messy day-to-day failures.
Book: Structured Finance and Insurance: The ART of Managing Capital and Risk Author: Christopher L. Culp Publisher: Wiley Finance, 2006 ISBN: 978-0-471-70631-1
In Part 1 we covered the big picture of operational due diligence and why so many hedge fund failures trace back to operational problems. Now in Part 2, Travers lays out exactly what to check, what questions to ask, and then shows us a real example interview with the operations team at Fictional Capital Management (FCM).
Chapter 9 is where Travers shifts from talking about investment analysis to something most people overlook: the boring operational stuff that actually prevents you from losing all your money to fraud.