Basel Regulations and Operational Risk Management: Conceptual Challenges Under Basel II & Basel III
Ashraf, U. (2012). Basel Regulations And Operational Risk Management: Conceptual Challenges Under Basel II & Basel III. London, Munich: Lambert Academic Publisher
University of Hong Kong Faculty of Law Research Paper No. 2013/005
Posted: 22 Jan 2013 Last revised: 14 Mar 2013
Date Written: November 12, 2012
Abstract
Financial globalization has given an impetus to the development and innovation in financial products. However, at the same time, it has complicated banking regulations and its consequent risk management mechanisms. The GFC and consequent Basel III have accentuated the importance of operational risk management manifold by adding new perspectives to the concept which was not identified properly under sophisticated and graded risk assessment processes in the years before the financial crisis of 2008. The main contribution of this book is providing a comprehensive analysis on various aspects of operational risk including: the evolution of the concept, its development and its treatment under Basel I, II and now under Basel III Accords. Historical operational risk events, evidence from case laws and regulatory responses to the crisis have been analysed to assess the procedural justice and distributive equity of various decisions made and regulations enforced. The ultimate objective is to make recommendations for a sound banking regulatory mechanism that supports stability and can reconcile with financial innovations in the globalized financial markets.
Keywords: Operational risk, Basel II & III, Banking regulations
JEL Classification: G18, G21, G24, G28, G38, K23, K33
Suggested Citation: Suggested Citation