Controls, Procedures and Risk

In the financial service industry risk is a constant threat to organizations of all sizes and to the markets themselves. Many industry 'events' have shown how dangerous it is when a business operates in an uncontrolled way, particularly when the lack of control was not evident to the management of the business until it was too late.

Controls, procedures and risk are occupying more and more management time. The responsibility to manage the risks lies with the whole operations team. If it is successful in fulfilling this role the overall risk of the business is reduced, if it is not successful the consequences may be severe.

In Controls, Procedures and Risk the author has deliberately focused on the practical side of risk, controls and procedures, rather than analysing the Basel Capital Accord and the capital requirements (which can be found in the appendices). Operations teams need to be aware of risk but not overwhelmed by it.

Risk management within, and by, the operations function is the focus of this book. From day-to-day risk to wider risk implications the operations function is reviewed to show the sources and implications of risk situations.

Controls, Procedures and Risk:

• covers the skills and procedures needed to enable effective monitoring and managing of risk, with case studies used to demonstrate 'success' and 'failure'
• explains about procedures design, implementation and documentation and illustrates the solutions
• demonstrates the key controls and the importance of control functions, audit and risk management groups and policy

1. 'Against the Gods'
2. Operations and operational controls
3. An introduction to operations and operational risk
4. The role of Operations in managing risk
5. Developing controls
6. Mapping risk
7. Measuring risk and the effects of controls
8. Procedures
9. Industry initiatives

• Appendix 1: Relevant website addresses
• Appendix 2: Operational risk — moving forward

A very shallow overview of Risk and Compliance functions of an investment bank. You'll probably need to read a lot more to really understand these functions.