This chapter provides a very effective and easy-to-read, non-technical introduction to operational risk, its inherent "fuzziness" and the challenges with identifying and quantifying the potential loss associated with it. The chapter begins with a discusion of the definition of operational risk and practical guidance on implementing an operational risk ... click here for more details.

This chapter provides a high-level but thorough explanation of the use of RAROC (risk-adjusted return on capital) and its implementation within a bank. Explanations of the mathematics behind the calculations are kept simple with easy-to-understand examples. RAROC analysis determines the economic capital required for each business line and ... click here for more details.