Part of operational risk. Banking management risks (bank processing, banking issues) primarily include settlement risks, operating cost risks and model risks. – Processing risks arise from errors and deficits that can be directly attributed to technical and organizational factors or their interaction. They arise when – the scope or quantity or quality of the resources required for smooth processing is insufficient, or – individual sections of a business process exhibit weaknesses and lead to processing errors. – Operating-cost risks can be traced back to the financial evaluation of input factors and the associated costs. Operating-cost risks can be further divided into – cost reduction risks and – cost increase risks. – Model risks are attributable to incorrect assumptions in the underlying calculation models. These primarily include errors in the valuation and measurement of financial items. – See defects, downside risk, due diligence, flash crash, formulas, financial mathematical, business continuity, information assurance, intangibles, IT risks, price risk, special, market liquidity risk, model uncertainty, legal risks, risk, banking, risk culture, risk avoidance policy, setback effect, spread risk, current risk, uncertainty, value at risk, loss event, video conference, warehousing risk. – Cf. ECB Monthly Report of May 2005, p. 89 (risk diversification), BaFin Annual Report 2004, p. 99 f. (supervisory approval for “full use”) and the respective BaFin Annual Report.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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