Operational Risk Management: A Complete Guide for Banking and Fintech (Wiley Finance) 2nd Edition

I read this book to give me a head start on my new role in operational risk within banking. Information presented very thurough, with very little fluff.

I was able to expand my knowledge of Operational Risk Management for a Large/Complex Financial Insitution. Philippa is able to share specific examples that directly relate to her experience as a Chief Risk Officer. This expereince is so valuable to those wanting to expand their knowledge and become more relevant in a quickly evolving industry.

Operational risk is one of the most difficult risks to manage due to people behaviour being un predictable new technologies introducing risks that were previously unknown. As compared to credit and market risks which have well defined and have elegant distributions Operational risk requires we have a well developed loss data collection key risk indicators risk control self assessment and scenario analysis. The case studies at end of book highlight what could go wrong.

As a practitioner in fintech, I was interested in this book through the lens of evaluating and getting ideas for our operational risk program. It is a good fit for that purpose. It provides some context and theory (for example, background on BASEL capital requirements), but the heart of the book is practical guidance on establishing and managing an operational risk program. I would recommend it to folks in information security, fraud, or general 1st, 2nd, or 3rd LoD operational risk roles who are interested in expanding their point of view and learning some best practices.