{"title":"Overview of Operational Risk Management Methods","authors":"Milan Rippel, Pert Tepl\u00fd","volume":70,"journal":"International Journal of Mechanical and Industrial Engineering","pagesStart":2610,"pagesEnd":2613,"ISSN":"1307-6892","URL":"https:\/\/publications.waset.org\/pdf\/1484","abstract":"<p>Operational risk has become one of the most discussed topics in the financial industry in the recent years. The reasons for this attention can be attributed to higher investments in information systems and technology, the increasing wave of mergers and acquisitions and emergence of new financial instruments. In addition, the New Basel Capital Accord (known as Basel II) demands a capital requirement for operational risk and further motivates financial institutions to more precisely measure and manage this type of risk. The aim of this paper is to shed light on main characteristics of operational risk management and common applied methods: scenario analysis, key risk indicators, risk control self assessment and loss distribution approach.<\/p>\r\n","references":"[1] T. Arai, \"Key Points of Scenario Analysis\", Systems and Bank\r\nExamination Department: Bank of Japan, 2006, available at:\r\nhttp:\/\/www.boj.or.jp\/en\/type\/release\/zuiji_new\/data\/fsc0608be2.pdf.\r\n[2] \"BCBS: International Convergence of Capital Measurement and Capital\r\nStandards\", In Basel Committee on Banking Supervision. Press &\r\nCommunications: Bank for International Settlements, 2006, available at:\r\nhttp:\/\/www.bis.org\/publ\/bcbs128.pdf, ISBN 92-9197-720-9.\r\n[3] M. 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