Operational Risk Management for Hedge Funds

2017 ◽  
Author(s):  
Claus Huber ◽  
Daniel Imfeld
Keyword(s):  
Risk Management ◽  
Hedge Funds ◽  
Hedge Fund ◽  
Operational Risk ◽  
Practical Implementation ◽  
Operational Risk Management ◽  
Risk Management Framework ◽  
Risk Framework ◽  
Mathematical Formulas ◽  
And Control

This chapter focuses on operational risk management for hedge funds. It takes a practitioner’s view of how to implement an operational risk framework as part of an enterprise-wide risk and control system in a “hands-on” approach. The focus of the contribution is on practical implementation with simple tools, such as Excel, rather than trying to quantify operational risk with complex mathematical formulas. The chapter outlines how a midsize hedge fund can develop systematically an integrated perspective on its main risks and set priorities on how to mitigate and control these risks. It illustrates the proposed process framework and solutions by using an example of the operational risk of “unauthorized trading.” Hints to avoid pitfalls when implementing an operational risk management framework, based on the authors’ experience as practitioners, are also provided.

The Operational Risk Assessments in Manufacturing Industry

2017 ◽  
pp. 125-146
Author(s):  
Melek Akgün
Keyword(s):  
Risk Management ◽  
Manufacturing Industry ◽  
Operational Risk ◽  
Hazard Identification ◽  
Natural Environments ◽  
Operational Environment ◽  
Risk Environment ◽  
Operational Risk Management ◽  
Management Function ◽  
And Control

Today's companies are facing frequent fluctuation in their social, politics, economics and natural environments, which significantly increased complexity in management function. In such a high risk environment planning, coordinating and control of a company's functions is a very challenging duty for management teams. Regardless of the source this kind risks are dealt with by operational risk management process. The operational risk management has been applied mostly in financial institutions, particularly in the banks until near past. Nevertheless, the companies that are non-financial have to also use operational risk management techniques to continue properly their operations. The purpose of operational risk management can be defined as enhancing hazard identification in the operational environment in order to eliminate risks or reduce them to an acceptable level. In this chapter will be discussed the methods and techniques could be used for the operational risk assessment in manufacturing industry.

Implementing an Operational Risk Management Framework: Psycho-Social Factors in Tanzania

2012 ◽  
Vol 22 (1) ◽  
pp. 77-86 ◽  
Author(s):  
Annelize van Niekerk ◽  
Dirk J Geldenhuys ◽  
Madia M Levin ◽  
Michelle May ◽  
K.P. Moalusi
Keyword(s):  
Risk Management ◽  
Social Factors ◽  
Operational Risk ◽  
Management Framework ◽  
Operational Risk Management ◽  
Risk Management Framework

scholarly journals A proposed operational risk management framework for small and medium enterprises

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Micheline J. Naude ◽  
Nigel Chiweshe
Keyword(s):  
Risk Management ◽  
Small And Medium Enterprises ◽  
Relevant Literature ◽  
Management Strategies ◽  
Operational Risk ◽  
Management Framework ◽  
Operational Risk Management ◽  
Operational Risks ◽  
Risk Management Framework ◽  
Medium Enterprises

Background: The gap between small and medium-sized enterprises (SMEs) and large businesses that perform risk assessment is significant. SMEs continuously face many operational risks and uncertainties in their daily operations, and these risks threaten to reduce productivity, increase costs and reduce profits.Aim: The purpose of this article was to develop an operational risk management framework that SMEs can use to identify and analyse risks in their operations and take corrective actions to mitigate these risks.Setting: Small and medium-sized enterprises in South Africa do not view risk management as a key component of organisational success, despite evidence that businesses that adopt risk management strategies are more likely to survive and grow.Methods: The article is exploratory in nature, and a conceptual analysis approach was used to formulate the framework. This study reviewed relevant literature sources on risk published between 2002 and 2017.Results: The four process steps of risk management were used as a reference point and form the foundation for the operational risk management framework. The categories of operational; marketing; technical and financial risks were identified from a review of available literature on risk management.Conclusion: There is a dearth of research that deals with operational risk management frameworks for SMEs. The expected contribution of this article, therefore, is twofold: firstly, it is envisaged that managers or owners of SMEs could use the proposed framework as a tool to appraise and minimise their operational risks; secondly, it will add to the current body of knowledge on risk appraisal for SMEs.

scholarly journals IPTEKS OPERASIONALISASI PENGGUNAAN APLIKASI LED (LOSS EVENT DATABASE) PADA PT BANK SULUTGO CABANG PEMBANTU BAHU

2018 ◽  
Vol 2 (02) ◽  
Author(s):  
Mahdiani Erita Samsudin ◽  
Fanda Rundengan
Keyword(s):  
Risk Management ◽  
Operational Risk ◽  
Bank Risk ◽  
Web Based ◽  
Operational Risk Management ◽  
Risk Response ◽  
Event Risk ◽  
Risk Estimates ◽  
Loss Event ◽  
And Control

PT bank SULUTGO is one of the companies who are moving in the banking field. One of the best ways to know every branch of branch from pt bank sulutgo is applying the database loss event that may be able to help the process of walking way with good conditions. Application loss event database (LED) is a web-based application used to help banks in inventory of losses damaged or needed by banks and the potential of bank losses and planning of risk response related to operational risk management. Trusted operations.Data of losses are very important for connecting bank risk estimates to experiences of loss with risk management and control decisions.Keywords : Application Loss Event,Risk And Control Decisions Management

scholarly journals Challenges facing banks in emerging countries to be Basel compliant for operational risk

2008 ◽  
Vol 5 (3) ◽  
pp. 284-290
Author(s):  
Jackie Young
Keyword(s):  
Risk Management ◽  
Operational Risk ◽  
Central Banks ◽  
Emerging Countries ◽  
Practical Approach ◽  
Basel Accord ◽  
Management Framework ◽  
Operational Risk Management ◽  
Risk Management Framework ◽  
Critical Issues

The New Basel Accord identified various requirements for an effective operational risk management framework. Most central banks and regulators adopted these requirements for their own banking environments. However, there are many challenges facing these banks to ensure the effective incorporation of such a framework. An end-result of establishing an operational risk management framework is to calculate and allocate a realistic capital charge for operational risk. To achieve this, various principles and methodologies must be embedded that will ensure a practical approach to operational risk management. This paper aims to identify certain critical issues and challenges for banks of emerging countries to consider when developing an operational risk management framework in order to comply with the Basel requirements.

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