Study Notes: Cruz, Chapter 2: OpRisk Data and Governance

Cruz, Chapter 2: OpRisk Data and Governance Study Notes contains 28 pages covering the following learning objectives:

* Describe the seven Basel II event risk categories and identify examples of operational risk events in each category.
* Summarize the process of collecting and reporting internal operational loss data, including the selection of thresholds, the timeframe for recoveries, and reporting expected operational losses.
* Explain the use of a Risk Control Self Assessment (RCSA) and key risk indicators (KRI’s) in identifying, controlling and assessing operational risk exposures.
* Describe and assess the use of scenario analysis in managing operational risk, and identify biases and challenges which can arise when using scenario analysis.
* Compare the typical operational risk profiles of firms in different financial sectors.
* Explain the role of operational risk governance and explain how a firm’s organizational structure can impact risk governance.

After reviewing the notes, you will be able to apply what you learned with practice questions.

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