Operational risk disclosures in financial institutions

Maike Sundmacher, Guy Ford

Research output: Chapter in Book/Report/Conference proceedingConference proceeding contributionpeer-review

Abstract

In this paper we examine the current disclosure standards of financial institutions with regards to their operational risk measurement and management systems. Our sample covers 57 financial institutions across five countries. We discuss our findings in light of the Basel II recommendations on risk disclosure. We find that there is currently high variability in the quality and quantity of disclosure on operational risk. We conclude that while it is likely that the Basel II requirements will lead financial institutions to disclose greater information on operational risk, the lack of consistency in the way financial institutions report this information places doubt over its usefulness to external parties.
Original languageEnglish
Title of host publicationProceedings of the Academy of Commercial Banking and Finance
EditorsJoAnn Carland
Place of PublicationCullowhee, NC
PublisherAllied Academies
Pages5-9
Number of pages5
Publication statusPublished - 2006
EventAllied Academies International Conference - New Orleans
Duration: 12 Apr 200615 Apr 2006

Publication series

NameProceedings of the Academy of Commercial Banking and Finance
PublisherAllied Academies
Number1

Conference

ConferenceAllied Academies International Conference
CityNew Orleans
Period12/04/0615/04/06

Keywords

  • financial institutions
  • accounting
  • disclosure of information
  • risk perception

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