Mastering Operational Risk, 2nd Edition

Preface to the first edition

Risk management has taken a knock over the past few years, as the financial crisis has unfolded. But perhaps the problem was not so much a failure of risk management as such, as its absence from strategic and other decisions.

That is why we believe Mastering Operational Risk is both timely and a reminder that good risk management is fundamental to good business management. And, as we show in Chapter 2, good operational risk management can bring real business benefits. It is as much about opportunities as it is about threats: so it demands imagination and the flexibility to adapt to a rapidly changing risk environment.

Operational risk emerged as a risk discipline in its own right in financial services in the early ...