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Book Lounge: Where next for operational risk?

with author, Peter Hughes and Rachael Johnson

Despite twenty years of endeavor, it’s thumbs down for the banks’ approach to operational risk management. The Basel Committee on Banking Supervision has abandoned the flagship advanced measurement approach (AMA) – the inhouse models banks use to calculate regulatory capital – and C-suite executives wonder what possible business value can be derived from subjective, non aggregatable, color-coded, risk & control self-assessments.

 

In this book Peter examines how the banking sector lost its way in the area of operational risk management and gives his own thoughts on the next generation risk and accounting tools and techniques that will resolve many of the issues banks currently face and optimally position them to meet both the known and unknown challenges that lie ahead.

'We are indeed fortunate to have had Peter on the business school’s faculty these past years. Readers of his book will be equally fortunate to benefit from his expert knowledge of the subject matter that he presents in such an engaging and practical way. Most importantly, readers will obtain the tools and techniques to resolve one of the industry’s most elusive and longest-standing conundrums; how to quantify and value exposure to non-financial risk'.

Peter Hughes

Chairman of the Risk Accounting Standards Board

Peter Hughes is Chairman of the Risk Accounting Standards Board (RASB) and a visiting fellow and advisory board member of the Durham University Business School’s Centre for Banking, Institutions and Development where he leads research into risk-based accounting methods and systems. He has been granted life membership of the Institute of Chartered Accountants in England & Wales. He was formerly a banker with JP Morgan Chase (Chase Manhattan Bank) where, during a 25-year career, he occupied country, regional and global executive roles in operations, finance, risk management, treasury & trading, and internal audit.

See also: RASB’s Accounting Reform Call for Action by Peter Hughes, Chairman of the Board

Rachael Johnson

Global Head of Risk Management and Corporate Governance, Professional Insights at ACCA

Rachael has over two decades’ experience creating thought leadership content on a range of financial topics including risk management, responsible investing, sustainable finance, regulatory change management, and corporate governance.

 

In her current role at ACCA, Rachael produces research, thought leadership and CPD content on risk and corporate governance for members and partner organisations around the world. As the secretariat of ACCA’s Global Forum for Governance, Risk and Performance, she also advocates and provides comments for consultations. In addition, she is a member of the newly formed Accountancy Europe (AcE) Corporate Governance Policy Group and part of the Business at OECD (Biac) Corporate Governance Committee.

 

Rachael started her career as a financial journalist at RISK magazine and later moved to Euromoney, eventually becoming deputy editor of AsiaMoney in Hong Kong. As a freelance writer in London, where she is based, she produced various editorial work for financial publications, trade bodies, banks, fintechs, and asset managers.

 

Rachael graduated from Indiana University in the US with a BA in Journalism & Communications, and minors in Environmental Science and Public Affairs.

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