Operational Risk Capital: A Problem of Definition
ANDREW KURITZKES
(Vice chairman at Oliver, Wyman & Company in New York, NY. akuritzkes@owc.com)
1484
Abstract
This article discusses the three approaches for setting capital charges for operational risk as proposed by the New Basel Accord. The article addresses a series of questions raised by the Basel proposal related to defining, measuring, and reserving for operational risk. The author suggests that capital reserves may actually serve as a deterrent to reducing operational losses.
Citation
KURITZKES, A. (2002), "Operational Risk Capital: A Problem of Definition", Journal of Risk Finance, Vol. 4 No. 1, pp. 47-56. https://doi.org/10.1108/eb022954
Publisher
:MCB UP Ltd
Copyright © 2002, MCB UP Limited