Follow TopicFollow Contributor Share Feedback
Op Risk Capital: Don’t Loathe It, Change It!

Op Risk Capital: Don’t Loathe It, Change It!

by Peter Hughes

Senior Advisor, Risk Accounting Standards Board and Author, Risk accounting: The complete guide to quantifying and accounting for non-financial risks

Nov 30, 2023

Thoughts

“Why bank CEOs loathe op risk capital” was a headline in an April 2017 Risk.Net article that left readers in no doubt what bank CEOs truly feel about one aspect of the regulatory capital regime. In this article, Peter Hughes suggests that bank CEOs should be pressing their own organizations to find a solution.

The CEOs who protested the loudest in the Risk.Net article referred to above were JPMorgan Chase’s Jamie Dimon and former CEO of Standard Chartered, Peter Sands. Their conclusion was that the regulators’ approach to calculating the amount of capital to be set aside to buffer future op risk losses doesn’t help the cause of proactive risk management and should be scrapped.

This content is available to paid Members of Starling Insights.

If you are a Member of Starling Insights, you can sign in below to access this item. 

 

If you are not a member, please consider joining Starling Insights to support our work and get access to our entire platform.  Enjoy hundreds of articles and related content from past editions of the Compendium, special video and print reports, as well as Starling's observations and comments on current issues in culture & conduct risk management.

Join The Discussion

See something that doesn't look quite right?

We strive to provide high quality and accurate content at all times. With that said, we realize that sometimes links break, new information becomes available, or there is something that you feel we may have missed.

If you see something that you think we should be aware of, we would love to hear from you. Feel free to drop us a note below and leave your name and contact info if you'd like to hear back from us.

Thank you for being a key part of the Starling Insights community!