Operational risk scenario analysis has existed for a long time. Why is it under more scrutiny now? Patrick Naim, Elseware: I wouldn’t describe it as scrutiny so much as more ambitious objectives for ...

Key insight: The proposal simplifies operational risk capital for the largest banks. Forward look: Critics warn lower capital ...

Atkar: Not necessarily on operational risk. For instance, the recent Basel paper on the treatment of insurance to mitigate operational risks proposes arguably a more complicated approach than ...

Boards formally treat model risk as important, but in practice many banks treat it as a compliance box-ticking exercise that only attracts senior attention when something visibly breaks or a regulator ...

Why industry leaders must look past the hype to the hard realities. Artificial intelligence is transforming banking at unprecedented speed — powering fraud detection, compliance automation, credit ...

The gap between AI and traditional risk modelling is substantial. Traditional models often fall short when dealing with complex, non-linear relationships. In contrast, AI models thrive in detecting ...

The U.S. bank supervisory agencies recently issued for public comment revised guidance regarding the implementation of the proposed Basel II-related, risk-based capital requirements. Among the ...

Following the global financial crisis that began in 2007–08, policy- makers have multiplied their efforts and implemented reforms to strengthen the resilience of the financial sector. But – while ...

Relying on one giant AI model for everything is a trap; it’s too expensive and slow for simple tasks and too risky for the ...