Economics, Econometrics and Finance
8 years ago

Insurance fails to effectively mitigate operational risk in banks, study finds.

Politická ekonomie
The Role of Insurance in Operational Risk Mitigation - A Case Study
Milan Rippel, Lucie Suchánková, Petr Teplý

Paper Summary

Related papers

Economics, Econometrics and Finance
4 years ago

Insurance fails to effectively manage operational risk in banks, study finds.

Insurance Dynamics
2 views
Business, Management and Accounting
7 years ago

Banking Sector Faces Double Challenge: Turning Risk into Opportunity

Risk Management
Insurance Dynamics
Sovereign Wealth
1 view
Business, Management and Accounting
8 years ago

New Framework Enhances Stability of Commercial Banks Against Operational Risks

Risk Management
1 view

Operational risk management is crucial in the financial industry, especially after scandals at UBS and Societé Générale. Despite Basel III not focusing much on this risk, it should not be ignored. This paper explores how insurance can be used in banks to manage operational risk according to Basel II rules. A case study in Central Europe found that insurance did not effectively mitigate operational risk in the bank studied, contrary to expectations.