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@GARP
FRM I Financial Risk Manager
2024
®
EXAM PART II
Operational Risk
and Resilience
@Pearson
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"Sound Management of Risks Related to Money Laundering and "Basel Ill: Finalising Post-Crisis Reforms," by Basel Committee on
Financing of Terrorism," by Basel Committee on Banking Supervision, Banking Supervision, December 2017, by permission of the Bank for
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International Settlements is freely available at their website: www.bis.org. "Cyber-Resilience: Range of Practices," by Basel Committee on Banking
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"Risk Capital Attribution and Risk-Adjusted Performance Measurement," Chapter 3, Table 3.1; Chapter 4, extracts in Section 4.1; and Chapter 11,
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by the Basel Committee on Banking Supervision on March 2009. on the BIS website free of charge: www.bis.org.
Reprinted with permission of the Bank for International Settlements.
Figure 4.9, Table 5.2, and Table 9.1 from Operational Risk Management:
The full publication is available on the BIS website free of charge:
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"Capital Planning at Large Bank Holding Companies: Supervisory license from John Wiley & Sons, Inc.
Expectations and Range of Current Practice," August 2013, by the Board
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Professionals.
"Stress Testing Banks," by Til Schuermann, reprinted from the International
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@Pearson ISBN 10: 0-13-829207-8
ISBN 13: 978-0-13-829207-2
, Contents
1.4 ORM Frameworks 7
Part One Holistic Overview of ERM Frameworks : ISO 31000 and
Operational Risk and COSO ERM 7
Risk Management Cycle: Four Actions 8
Resilience
ORMF with Steps and Tools 8
1.5 Nature and Features of
Operational Risk 9
Chapter 1 Introduction to
Heterogenous 9
Operational Risk and Resilience 3 Idiosyncratic and Diffuse 10
Heavy Tailed 10
Interconnected 10
1.1 Definition and Scope of
Dynamic 11
Operational Risk 4
Operational Risk Definition 4 1.6 Resilience: Definitions,
ORM, Non-Financial Risk Management Components, and Links with
(NFRM), and Enterprise Risk Operational Risk 11
Management (ERM) 4 First Regulatory Guidance on Operational
Operational Risk Categories 4 Resilience: The UK 11
1.2 Origins of the ORM Discipline 6 US Regulation 12
BCBS Principles on Operational Resilience 13
1.3 Compliance, Strategic, and Other Regulators on Other Aspects of
Reputational Risks, and Resilience ECB and MAS 13
the Boundaries of Operational Risk 6
Legal Risk and Compliance 6 1.7 The Value of Risk Management:
Reputational Risk 6
Opportunities and Stability 14
Strategic Risk 7
iii
