BNET Business Dictionary

Business Definition for: Operating Risk

  • the risk of a high operating leverage

Additional Resources

ABA creates Operating Risk Committee
AROUND THE NATION To help bankers reduce losses and comply with new capital requirements established by the International Basel Committee on Banking Supervision, the American Bankers Association ABA has created an Operating Risk Committee. The committee will examine all areas of operational risk, which the Basel Committee defines as "direct...
Tags: American Bankers Association, bank, Banking, Litigation
Research articles 2003-02-01
Operational Risk: Automate to Eliminate
For a variety of reasons, operational risk is climbing financial institutions agendas. It is becoming increasingly clear that those firms which have risk sensitive processes and organisational structures will be able to reap benefits – in lower capital set-asides, improvement to the bottom line and, not least, reputation. Operating risk...
Tags: Error, Global Treasury News, Strategy, Security, Management
White papers 2001-10-01
Risk Management In Small Business - Part 2: Reducing Your Operational Risks
The article asserts that through risk management one can limit the possible financial losses caused by unsuccessful normal business operations. It is essential to contemplate the things which could go wrong within the business and to evaluate the financial cost to one if these events happen. Then one can seek...
Tags: Financial, Leasing, Small Business, Risk Management, Capital Structures, Financial Accounting, Finance
White papers 2003-01-01
Insurance of Operational Risk and the New Basel Capital Accord
This white paper document outlines the following points which involve the role of insurance in risk management framework, providing an overview of Insurance Market for Operational Risks and insurance and the New Basel Capital Accord. The paper further schematically describes the operating risk management framework. It also gives an insight...
Tags: Risk Management, Federal Reserve Bank Of Boston, Financial Planning, Insurance, Financial Services, Strategy, Security, Finance, Business Operations, Corporate Insurance, Management
White papers 2001-09-14
Isolating Securitized Assets From the Credit and Operating Risk of Originating Banks and Their Affiliates
A central objective of securitization is to de-link the risks inherent in the securitized assets from the operating and credit risk of the sponsor. Typically this involves structuring designed. This article discusses some of the principal issues related to the achievement of such delinkage in the context of securitizations by...
Tags: Asset, Bank, Risk, Securitization, Goodwin Procter, Asset Management, Banking, Strategy, Operational Planning, Business Operations, Financial Services, Management
White papers 2005-04-08
Assessing Exchange Rate Risk
When companies undertake international business, they take a risk because their investments and business operations may be affected by changes in the exchange rates for different currencies. This risk is known as exchange rate risk.Increasingly, companies are fighting for a slice of global markets, particularly in developing nations, and putting...
Tags: Risk, Exchange Rate, Currency, Free Trade, Finance, Transaction, Relationship, Buyer, BNET Editorial
Articles 2007-12-06
Accounting for unsystematic risk: diversifying your portfolio is a sound equity investment practice, but that alone is unlikely to maximise your returns. Malcolm Howard offers some other ideas
According to finance theory, the risk associated with securities can be divided into two categories: systematic market risk and unsystematic (non-market or specific) risk. Unsystematic risk is unique to a security and will often relate to unexpected pieces of good news and bad news relating either to the company concerned...
Tags: Barratt Developments Plc., Vodafone Group Plc.
Research articles 2006-09-01
Thomas M. Comer appointed executive vice president and chief operating officer of Aon Risk Resources
CHICAGO--BUSINESS WIRE--June 18, 1996--Aon Risk Resources Inc. Aon Risk Resources, a subsidiary of Aon Re Worldwide, Inc. Aon Re Worldwide, today announced that Thomas M. Comer has been appointed executive vice president and chief operating officer.Aon Risk Resources provides consulting, pooling, risk management and captive expertise through offices around the...
Tags: Aon Re Worldwide Inc.
Research articles 1996-06-18
Simple checklist saves lives in the operating room, study finds
A simple operating-room checklist, similar to the one pilots use in the cockpit before takeoff, has been credited with dramatically reducing complications and even saving lives - sparking calls for widespread use in Canadian hospitals by summer. A New England Journal of Medicine study of 7,688 patients in eight hospitals,...
News items 2009-08-07
What Investors Should Know About How Advisors Manage Risk
In responding to how real estate investment managers address risk both in a strategic sense, and also tactically, the vantage point of this paper is that of a value-added real estate manager and one of pragmatism. Analysts and academics describe or characterize different forms of risk. The article talks about...
Tags: Institute For Fiduciary Education, Advisor, Investor, Real Estate, Business Operations
White papers 2002-04-01
Study: Average Cost of Risk Rises 9%.(Brief Article)(Industry Overview)
The average cost of risk in the United States increased in 1998 for the first time in six years, according to a study by Risk Insurance Management Society Inc. and Ernst & Young LLP. The study found flat premiums and higher retained losses drove the...
Tags: Ernst & Young LLP, FINANCE, Insurance, revenue
Research articles 2000-02-01
401(k)s: The Great American Risk Transfer
Last night's "60 Minutes" segment on 401k plans see following video highlighted the high fees in 401k and other employer-sponsored retirement accounts. While helping participants understand the fees they pay is laudable, there's a bigger problem with 401ks: the switch from pension plans to 401ks was the largest risk transfer...
Tags: 401(k) Plan, Stock, Retirement Plan, Pension Plan, Benna, 401(k), Retirement Plans, Investment, Personal Finance, Human Resources, Benefits, Finance, Jill Schlesinger
Blog posts 2009-04-20
Mutual Risk Management Reports Operating Results for Fourth Quarter and Full Year 2000
Business Editors HAMILTON, Bermuda--BUSINESS WIRE--Feb. 15, 2001 Takes $46.1 Million Fourth Quarter Charge to Establish Reserves Related to Reinsurance Receivables Excluding Charge, Fourth Quarter Operating Income Increases 29% to $0.32 per Common Share Improved Pricing Strengthens Corporate Risk Management Business as Program Business...
Tags: Company, Mutual Risk Management Ltd.
Research articles 2001-02-15
HP And Algorithmics: Enterprise Risk Management Solutions
Together, HP and Algorithmics provide proven risk management solutions for the worldwide financial services industry, built on cost-effective, industry-leading technologies. HP servers and services, Algorithmics risk management solutions, and Linux operating system software deliver the agility, efficiency, and return on investment that today's leading financial institutions demand. The accelerated adoption...
Tags: Algorithmics, Enterprise Risk Management, Finance, Financial Planning, Financial Services, Hewlett-Packard Co., Linux, Management, Open Source, Operating Systems, Risk Management, Security, Software, Strategy, UNIX
White papers 2004-05-01
ACE USA Appoints Patricia Barrett as Vice President To Lead Corporate Risk Fidelity Underwriting Unit
PHILADELPHIA -- ACE USA, the U.S.-based retail operating division of The ACE Group of Companies, today announced the appointment of Patricia Barrett as Vice President, to lead the ACE USA Corporate Risk Fidelity Underwriting unit--part of ACE USA's Professional Risk Division. Based in Los Angeles, Ms. Barrett has overall responsibility...
Tags: Barrett, Fidelity Investments, FINANCE, Government, Insurance, Regulations, Strategy
Research articles 2004-10-14
Conn's: Retailer with Bank-Type Risk
Saj Karsan submits: When Circuit City declared bankruptcy near the beginning of the recession, opportunities were created for other electronics retailers. One company that aggressively stepped forward to fill the void is Conn's Inc. CONN, a home appliance and electronics retailer. Conn's even took over some of Circuit City's previous...
Tags: Retail, Gadgets, Financial, Saj Karsan, Conns Inc.
External links 2009-10-30
Sensible Steps Toward Improved Risk Management
As the business landscape continues to evolve, increased business risks and changing risk profiles suggest a need for organizations to continuously improve their ability to identify and manage these risks. This need for continuous improvement calls for Enterprise Risk Management ERM. ERM establishes the oversight, control, and discipline to drive...
Tags: Risk Management, Enterprise Risk Management, Financial Planning, Financial Services, Strategy, Security, Business Security, Business Operations, Finance, Management
White papers 2005-10-19
"Captives and the Management of Risk"
NEW IN PRINT "Captives and the Management of Risk" International Risk Management Institute Inc. released Captives and the Management of Risk. The price of the book is $59.95. The 200-page book is divided into 13 chapters, including Insurable Risk, Managing Risk, Financing Risk, Reducing Risk Financing Expenses, Financial Impact of...
Tags: FINANCE, financing, International Risk Management Institute Inc., Investment
Research articles 2002-04-01
Real Estate Ownership and Operating Businesses: Does Combining Them Make Sense for REITs?
Variance in returns and risk-adjusted returns of six real estate investment trust REIT property types were analyzed for rent?s connection to operating business. We find that hotel REITs where real estate rents are connected to hotel operations has performed poorly, and retail mall and outlet REIT returns where rents are...
Tags: REIT, Real Estate, Investment, Business Operations, Finance
White papers 2003-01-01
RIMS' COO named society's fifth executive director.(Risk and Insurance Management Society Inc. names Mary Roth )(Brief Article)
Byline: Michael Bradford NEW YORK-Mary Roth has been named executive director of the Risk & Insurance Management Society Inc. Ms. Roth, the society's chief operating officer, has handled the executive director's duties since John J. Hampton Byline: Michael Bradford ...
Research articles 2004-10-25
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