Evolutionary Strides for Operational Risk Management
Operational risk, historically viewed as a lower priority than credit and market risk, was a focal point of the Securities Industry & Financial Markets Association's recent risk management conference. Though experts agreed that operational risk failures played a key role in the subprime mortgage crisis and subsequent credit meltdown, there was less unanimity on steps securities firms can take to mitigate systemic risk and prevent a repeat performance.
"Everybody is looking for practical ways to show the importance of operational risk," said Philippa Girling, an attorney with Montclair, N.J.-based Garrity Graham Murphy Garofalo & Flinn who moderated an op risk panel at the New York conference.
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