EU: ‘Operational risk’ and the legal landscape
Abstract
This short piece considers the relationship between the disciplines of operational risk management and law. It argues that a better understanding of this relationship is key to both risk managers and to legal actors as risk-based regulatory standards and rules feature increasingly prominently in international and EU standards that affect the operating environment for financial institutions and national laws that implement these standards. Taking the UK as an example, the paper considers the context of how ‘operational risk’ has featured in notable judicial decisions. It argues that given the emphasis laid on operational risk by Basel II, and indeed sound legal and governance systems more generally, it will behove professional risk managers to watch legal developments closely.
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Author's Biography
Joanna Gray is Professor of Financial Regulation in Newcastle Law School, University of Newcastle upon Tyne. She teaches and supervises postgraduate PhD students in the areas of corporate law, corporate finance, banking and financial services law. She has extensive experience as a consultant and professional trainer including conducting training seminars for the IMF. Her most recent research, funded by a research grant from the Arts and Humanities Research Council, centred on insights into the relationship between risk and regulation revealed during the course of the misfeasance litigation against the Bank of England brought by the liquidators of BCCI in the UK courts.
Citation
Gray, Joanna (2007, December 1). EU: ‘Operational risk’ and the legal landscape. In the Journal of Risk Management in Financial Institutions, Volume 1, Issue 1. https://doi.org/10.69554/DXHF3745.
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