11. Combining Operational Risks in Financial Risk Assessment Scores

  1. Ron S. Kenett PhD, BSc Chairman CEO Research Professor Professor Associate Director Editor in Chief President4,5 and
  2. Yossi Raanan PhD, BSc Senior Consultant Strategic Partner Senior Lecturer former dean head chairman director6,7
  1. Michael Munsch PhD Executive Manager Head consultant1,
  2. Silvia Rohe Group Manager Senior Consultant2 and
  3. Monika Jungemann-Dorner Senior International Project Manager3

Published Online: 19 AUG 2010

DOI: 10.1002/9780470972571.ch11

Operational Risk Management

Operational Risk Management

How to Cite

Munsch, M., Rohe, S. and Jungemann-Dorner, M. (2010) Combining Operational Risks in Financial Risk Assessment Scores, in Operational Risk Management (eds R. S. Kenett and Y. Raanan), John Wiley & Sons, Ltd, Chichester, UK. doi: 10.1002/9780470972571.ch11

Editor Information

  1. 4

    KPA Ltd, Raanana, Israel; University of Turin, Italy

  2. 5

    NYU-Poly, Center for Risk Engineering, New York, USA

  3. 6

    KPA Ltd, Raanana, Israel

  4. 7

    College of Management, Academic Studies, Rishon Lezion, Israel

Author Information

  1. 1

    Comprehensive University of Essen, Germany

  2. 2

    technical college for bank management and business economy, USA

  3. 3

    Verband der Vereine Creditreform eV, Germany

Publication History

  1. Published Online: 19 AUG 2010
  2. Published Print: 22 OCT 2010

ISBN Information

Print ISBN: 9780470747483

Online ISBN: 9780470972571

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Keywords:

  • business retail ratings;
  • financial risk management (FRM);
  • fraud detection;
  • money laundering;
  • operational risk management (OpR);
  • scoring systems;
  • terror funding

Summary

Financial risk management (FRM) and operational risk management (OpR) are strongly related in terms of data, methods and results. Information that is necessary to handle financial risks and credit ratings is also relevant for OpR, that is, it addresses information and monitoring of portfolio structures. Rating and scoring systems are common tools for decision making in credit agreements. The application of business retail ratings supports the development of individual scoring systems in a positive way. One of the major changes to the existing legislation is the breadth of financial instruments caught by the regulation and the enactment of the changes needed for the suppression of money laundering and terror funding. The challenge for the control of the leasing and handling processes is not to disturb the automated evaluation processes in routine business while optimizing point of sale procedures with a focus on fraud detection.

Controlled Vocabulary Terms

business forecasting; statistical measures