Ten Laws of Operational Risk (PDF)

A unique guide to the behaviors of operational risk and its effective management

Unlike credit and market risk, operational risk has lacked an overarching theory to explain how and why losses occur. In Ten Laws of Operational Risk: Understanding its Behaviours to Improve its Management, distinguished risk executive Michael Grimwade delivers an incisive exploration of the nature of operational risk to redesign the profession's existing tools and systematically predict its future behaviors.

His Ten Laws are underpinned by the business profiles of firms, human and institutional behaviours, and taxonomies for causes, control failures, events, and impacts. The book explains patterns and trends identified by the author through decades of hands-on experience and research, and provides:
* Systematic solutions for persistently problematic tools such as risk appetite, RCSAs, scenario analysis, reputational risk, stress testing, capital modelling and insurance.
* Fresh insights into the day-to-day activities of risk managers regarding predictive KRIs & KCIs, why controls fail, the risks of change, and the risk profiles of products.
* A structured approach for identifying emerging risks and predictions of the future behaviors of operational risk with respect to: pandemics, climate change, cyber-crime, and AI and machine learning.

With extensive analysis of industry data, numerous case studies and real-world examples, Ten Laws of Operational Risk is a unique handbook for Chief Risk Officers and other risk professionals. It's also an excellent resource for regulators, management consultants, students and academics.