Customer Reviews

Operational Risk: Measurement and Modelling

5 star:		(2)
4 star:		(0)
3 star:		(0)
2 star:		(1)
1 star:		(2)

 

 

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.

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.

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.

This book describes key ideas of operational risk, and provides valuable insight on how to deal with it. Particularly useful is Delta-EVT, the author's methodology for measuring operational risk that separates the risk into two parts - the expected operating loss due to `normal' operations, and the unexpected loss resulting from breakdowns in control [King 2001]. As well, this is one of the first comprehensive books on operational risk and the author has provided a nice balance of background and reference information along with the key ideas that with a bit of effort any level of practitioner can understand and apply.

I couldn't recommend a better, more well written book on the subject of operational risk. It cuts right to the heart of exactly what is needed in the business world today - more responsible risk management that improves the bottom line as well. Tasked with the operational risk management responsibility in our organization, it seems clear to me that Dr. King's book is the definitive source for both practitioners like myself and academics (my former role). His ideas are thought provoking, provide a sound knowledge base, and build on our lessons learned from credit and market risk management. In the early days, too much precious time and resources were wasted on risk management activities that scratched only the surface. On behalf of myself and other risk management professionals, thank you Dr. King for your contribution of a sound framework for risk management measurement and modelling. I can assure you that we greatly look forward to your next book.