Operational Risk: Measurement and Modelling [Hardcover]

Jack L. King (Author)

Book Description

ISBN-10: 0471852090 | ISBN-13: 978-0471852094 | Publication Date: June 2001 | Edition: 1

Operational risk is emerging as the third leg of an institutional risk strategy for financial institutions. Now recognized as a potential source of financial waste, operational risk has become the subject of surveys, analysis, and the search for a comprehenvise set of definitions and a shared framework. Written by a leading expert on operational risk measurement, this important work puts forth a cradle-to-grave hands-on approach that concentrates on measurement of risk in order to provide the needed feedback for managing and mitigating it. Using both theoretical and practical material, he lays out a foundation theory that can be applied and refined for application in the financial sector and beyond which includes a new technique called Delta-EVT(trademark). This technique is a combination of two existing methods which provides for the complete measurement of operational risk loss. The book contains comprehensive step-by-step descriptions based on real-world examples, formulas and procedures for calculating many common risk measures and building causal models using Bayesian networks, and background for understanding the history and motivation for addressing operational risk.

Editorial Reviews

Review

No. 8 besteller in 'Risk' (erivativesreview.com, December 2001)

Product Details

• Hardcover: 276 pages
• Publisher: Wiley; 1 edition (June 2001)
• Language: English
• ISBN-10: 0471852090
• ISBN-13: 978-0471852094
• Product Dimensions: 9.3 x 6 x 0.8 inches
• Shipping Weight: 1.3 pounds (View shipping rates and policies)
• Average Customer Review: 2.8 out of 5 stars  See all reviews (5 customer reviews)
• Amazon Best Sellers Rank: #2,639,383 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

7 of 9 people found the following review helpful:

2.0 out of 5 stars Disappointed, August 24, 2001

By 

Dr. Emilie Pons "orsetta" (London, UK) - See all my reviews
(REAL NAME)   

This review is from: Operational Risk: Measurement and Modelling (Hardcover)

Actually I was quite disappointed. I did not expected it to be very quantitative but I think he is repeating himself all along. I'd rather have an idea explained once and clearly than 3 times, because at the 3 rd time I get bored and then I may miss something interesting. May be though he could not sell his book at such a price if it were shorter. Moreover, his approach to quant is more of a cooking receipe. I dont see the point of having a book with calculus without justification. Or you want it to be read by non quant and you don't put cooking receipe but only few numbers, or you want it to be more quanti and you don't put receipe but explanations. Anyway...it is a try on a non easy subject.

4 of 5 people found the following review helpful:

1.0 out of 5 stars Disappointing: Repeating the same idea all along, January 24, 2002

By A Customer

This review is from: Operational Risk: Measurement and Modelling (Hardcover)

This book could be half of its actual size. The author states his ideas in the first part and then just repeat them all along in the second part. For example, there are two chapters on extreme value theory, one in the first part and the other on the second part both telling basically the same story (and both very simplistic by the way). Perhaps he thinks that by repeating the ideas the reader would catch his message. The part of the book that it is not pure repetition waste space with the "most famous operational losses" with no further analysis but just stating them. There is also no indication on the author's bio whether he has any real-life experience in operational risk to write a book on the subject. Hence, his ideas to measure and model OR might just not work at all. The industry is still waiting for a good book in operational risk.

3 of 4 people found the following review helpful:

1.0 out of 5 stars Waste of money. Already put mine on sale., February 16, 2002

By A Customer

This review is from: Operational Risk: Measurement and Modelling (Hardcover)

This is a very bad book. I wish I could have seen it before I bought it. I agree with the two reviewers that stated that this book is repetitive. I have already put mine on sale. At least I could use the money to buy a good operational risk book.