Skip to main content
SpringerLink
Log in

Operational Risk Management: Organizational and Governance Issues

  • Chapter
  • First Online:
Operational Risk Management in Banks

  • 1463 Accesses

Abstract

The centrality of the link between operational risk management and governance is underlined by the several cases of financial collapses , in which losses are mainly connected with supervisory and operational failure on behalf of the top management . Likewise, a sound operational risk management requires a focus on the organizational structure , in response to the need of combining measurement systems with efficient and adequate control units for managing operational risk . In this chapter we analyse the organizational and governance issues related to the measurement and control of operational risk, focusing on the key functions involved (e.g. committee, OR functions), on the interrelationship between the OR function and other functions (internal audit and compliance) as well as on the role of reporting and information technology.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 139.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 179.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Bazzarello, D., and D. Maucci. 2009. Le funzioni aziendali e i RO: l’esperienza UniCredit. In Il Rischio operativo nelle banche italiane. Modelli, gestione e disclosure, ed. G. Birindelli and P. Ferretti. Roma: Bancaria Editrice.

    Google Scholar 

  • BCBS-Basel Committee on Banking Supervision. 2005. Compliance and the compliance function in banks, April.

    Google Scholar 

  • BCBS-Basel Committee on Banking Supervision. 2013. Principles for effective risk data aggregation and risk reporting, January.

    Google Scholar 

  • BCBS-Basel Committee on Banking Supervision. 2014. Review of the principles for the sound management of operational risk, October 6.

    Google Scholar 

  • Berlanda, M. 2009. La collaborazione con la funzione Risk Management. Paper presented at Associazione Bancaria Italiana Convention on Compliance in Banks, Dalle regole alle strategie di business, Milano, 20–21 ottobre.

    Google Scholar 

  • Birindelli, G., and P. Ferretti. 2008. Compliance risk in Italian banks: The results of a survey. Journal of Financial Regulation and Compliance 16 (4): 335–351.

    Article  Google Scholar 

  • Birindelli, G., and P. Ferretti. 2009. Il presidio organizzativo del RO e gli strumenti di mitigazione. In Il Rischio operativo nelle banche italiane. Modelli, gestione e disclosure, ed. G. Birindelli and P. Ferretti. Roma: Bancaria Editrice.

    Google Scholar 

  • Birindelli, G., and P. Ferretti. 2013. Compliance function in Italian banks: Organizational issues. Journal of Financial Regulation and Compliance 21 (3): 217–240.

    Article  Google Scholar 

  • Brienza, P., and P. Gianturco. 2005. I profili organizzativi della struttura di Operational Risk Management. In Il rischio operativo nelle banche, ed. G. Gabbi, M. Marsella, and M. Massacesi. Milano: Egea.

    Google Scholar 

  • Cagan, P. 2006. On finding linkages: Corporate governance and operational risk. The John Liner Review 19: 7.

    Google Scholar 

  • Dos Santos, B., and L. Sussman. 2000. Improving the return on IT investment: The productivity paradox. International Journal of Information Management 20: 429–440.

    Article  Google Scholar 

  • EY. 2015. Rethinking risk management.

    Google Scholar 

  • Fernández-Laviada, A. 2007. Internal audit function role in operational risk management. Journal of Financial Regulation and Compliance 15 (2): 143–155.

    Article  Google Scholar 

  • Fheili, M.I. 2011. Information technology at the forefront of operational risk: Banks are at a greater risk. Journal of Operational Risk 6 (2): 47–67.

    Article  Google Scholar 

  • Flores, F., E. Bónson-Ponte, and T. Escobar-Rodríguez. 2006. Operational risk information system: A challenge for the banking sector. Journal of Financial Regulation and Compliance 14 (4): 383–401.

    Article  Google Scholar 

  • Friedhoff, J., and M. Mansouri. 2015. Monitoring IT operational risks across US capital markets. Journal of Operational Risk 10 (2): 61–97.

    Article  Google Scholar 

  • Garnero, R. 2003. Audit Management: una metodologia di valutazione dei rischi aziendali. In I controlli interni nelle banche. Evoluzione, metodi e casi pratici, ed. M. Alonzo, A. Chiarotto, R. Garnero, C. Giaj Levra, S. Panebianco, A. Pappadà, and G. Varola. Roma: Edibank.

    Google Scholar 

  • Giardina, V., A. Ierardi. 2009. La governance del framework ORM e la sana e prudente gestione dell’Information Technology: l’esperienza del Consorzio Operativo Gruppo Montepaschi. In Il Rischio operativo nelle banche italiane. Modelli, gestione e disclosure, ed. G. Birindelli, and P. Ferretti. Roma: Bancaria Editrice.

    Google Scholar 

  • Gusmeroli, M., A. Bonolo. 2009. Il RO e la revisione dei processi aziendali. In Il Rischio operativo nelle banche italiane. Modelli, gestione e disclosure, ed. G. Birindelli, and P. Ferretti. Roma: Bancaria Editrice.

    Google Scholar 

  • Kaminski, P., D. Mikkelsen, T. Poppensieker, and A. Raufuβ. 2016. Nonfinancial risk: A growing challenge for the bank, McKinsey, July.

    Google Scholar 

  • Lyons, S. 2006. Corporate defence: Are stakeholders interests adequately defended? Journal of Operational Risk 1 (2): 63–73.

    Article  Google Scholar 

  • Metelli, F. 2005. Dalla teoria alla pratica: la strada dell’operational risk management in una banca italiana, Corso di aggiornamento A.S.S.B.B. – Università Cattolica su Il Rischio Operativo nelle Banche: Metodologie di valutazione e strumenti di copertura assicurativa, Milano, 7–8 Giugno.

    Google Scholar 

  • Milkau, U. 2013. Adequate communication about operational risk in the business line. Journal of Operational risk 8 (1): 35–57.

    Article  Google Scholar 

  • Miranda, A. 2000. Rischio operativo e intermediazione finanziaria, Bancaria 7–8.

    Google Scholar 

  • Paessler, D. 2014. Visibility in IT operational risk management. The role of network, White Paper, June.

    Google Scholar 

  • Pandey, D. 2008. Who ‘owns’ operational risk? http://ssrn.com/abstract=1262606.

  • Pasquini, C. 2009. Introduzione alla sessione ‘Modelli e fattori di successo: esperienze a confronto’. Paper presented at Associazione Bancaria Italiana Conference on Compliance in Banks, Dalle regole alle strategie di business, Milano, 20 e 21 ottobre.

    Google Scholar 

  • Prokopenko, Y., and D. Bondarenko. 2012. Operational risk management: Best practice overview and implementation, Risk professional workshop, Tirana, Albania, September 10–11.

    Google Scholar 

  • Renna, S. 2007. La gestione del rischio legale: ruoli ed interazioni fra le funzioni di ORM e di Compliance. In Basilea 2. Cosa devono fare le banche adesso. Le nuove disposizioni di vigilanza e i processi implementativi in atto, Atti del convegno del 22 e 23 gennaio, ed. ABI – Associazione Bancaria Italiana, 67–80. Roma: Bancaria Editrice.

    Google Scholar 

  • Scoppio, M. 2005. Punti di attenzione nel quadro regolamentare: internal auditing, sound practice, operational risk e “nuova” funzione di compliance, Intervento al Seminario ABIFORMAZIONE su Lineamenti evolutivi della funzione di Internal Audit, Milano, 24–25 febbraio.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Management and Business Administration, “G. d’Annunzio” University of Chieti-Pescara, Pescara, Italy

    Giuliana Birindelli

  2. Department of Economics and Management, University of Pisa, Pisa, Italy

    Paola Ferretti

Authors
  1. Giuliana Birindelli
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Paola Ferretti
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Paola Ferretti .

Copyright information

© 2017 The Author(s)

About this chapter

Cite this chapter

Birindelli, G., Ferretti, P. (2017). Operational Risk Management: Organizational and Governance Issues. In: Operational Risk Management in Banks. Palgrave Macmillan Studies in Banking and Financial Institutions. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-59452-5_4

Download citation

  • DOI: https://doi.org/10.1057/978-1-137-59452-5_4

  • Published:

  • Publisher Name: Palgrave Macmillan, London

  • Print ISBN: 978-1-137-59451-8

  • Online ISBN: 978-1-137-59452-5

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics

Search

Navigation