What's Hot

Nassim Nicholas Taleb's blog, an inspiring read | Incerto

Thursday, December 22, 2011

Risk Balanced Selection of Manufacturing Projects

Question: I have a situation in manufacturing operations where we have to take a judgmental decision on our equipment’s re-furbishing based on visual inspection. It is a very crucial area of the business since it is part of the complex and risky Klinkerization process.

In the short of it, we have to decide whether to replace brick lining which is critical for the survival of the equipment before the next shutdown and that is a year later.

There are several ways I would go about dimensioning risk on this type of potential project and these have been introduced in the presentation that is attached to this post.

Wednesday, December 21, 2011

How to use external data in operational risk

Under the Basel II operational risk Advanced Measurement Approach for quantifying operational risk losses, banks need to factor external loss data into their internal capital models. The argument is old and has been debated for years but that hasn't prevented the topic of external data resurfacing again and again with risk managers in financial institutions.

In this journal, we look at key practices for implementing external loss data in a banks OpVaR calculations.

Friday, December 16, 2011

Building an Operational Risk System

There are stacks of operational risk reporting systems on the market but in general many of these risk solutions are overpriced and unsophisticated programs. 

So then, why not build your own operational risk reporting system?

In this post we look at building a risk modelling system from the ground up and believe me, it isn't as hard as you may think.

Tuesday, December 6, 2011

Unified Policy Frameworks

Causal Capital has recently been asked to develop a framework for unifying policy in a bank. We have decided to share our draft approach on this journal because some of our readers are working in this area of banking and might find the presentation interesting and useful.

Please Proceed into this article for the presentation.