Currently new banking regulation for Operational Risk is being considered and the proposed changes will affect significantly the range of quantitative modelling and risk management practice throughout the world. This is a critical time for banking supervision and regulation and it is important that all points related to the quantitative, qualitative and practical considerations for operational risk modelling be carefully considered.
As the first of multiple responses planned to address the new Basel banking regulations on Operational Risk, Dr Peters and colleagues Dr Ariane Chapelle, Dr Bertrand Hassani, Dr Evangelos Sekeris and Dr Pavel Shevchenko have published a response to the banking community on points to carefully consider with the new proposed SMA guidelines, see the Risk article:
Further responses in development, that will follow this industry wide risk magazine response include formal responses to the Basel Committee consultative review board and academic journals. Furthermore, the UCL Network of Operational Risk Managers ”UCL-NORM” collective group of risk managers from banks around London, US and Europe and academics in Operational Risk, which was set up and run by Dr Ariane Chapelle, Professor Tomaso Aste and Dr Gareth Peters over the last two years, will be preparing a formal response as a collective.