Back Office and Operational Risk

Jacket text for Back Office and Operational Risk

This fully revised and updated third edition of the groundbreaking book Back Office and Beyond, now retitled Back Office and Operational Risk, is an essential read for anyone working in a financial organisation: whether front, middle or back office; trainee, staff or manager.

With practical guidance and advice throughout, including key excerpts from international financial authorities, this book details all you need to know to ensure your organisation avoids the various pitfalls of operational risk. It provides rigorous instruction and information including:

- Basic responsibilities and systems at all levels.
- Specific demands of numerous deal types and products, from capture to clearing.
- Reconciliations and investigations.
- Risk management, identification and control.

In the aftermath of the 2008-2009 financial crisis, there has never been a more important time for institutions to ensure they are secure from the hazards of operational risk. This book is written by an expert in the field of operations, a former designer of the ACI Dealing Certificate with over twenty years’ senior treasury experience, and should help ensure that any organisation both survives and thrives in the face of widespread daily hazards.

With so many banks offering similar products and pricing, accurate and speedy settlements have become a competition issue not to be ignored. The first two editions of this book became the benchmark references for best practice in back office procedures, and this new edition builds on this solid foundation to offer a fully updated and revised guide.

Chapter headings for Back Office and Operational Risk

About the Author
Acknowledgements
Introduction

1. Basic responsibilities and systems
2. Deal capture
3. Validation and payment
4. Settlement, netting and clearing
5. Reconciliations and investigation
6. Risk management, controls, compliance, documentation
7. Operational Risk - Identification and Control
8. Specific caveats by deal type
9. Derivatives

Self Tests

APPENDICES
1. Market interactivity
2. SWIFT
3. The Model Code
4. Repo settlements
5. EBA
6. Major ISO Trading Currency Codes
7. ACI formulae
8. Options
9. Payment outcomes
10. BIS data
11. EUR data
12. HYSE.Euronext Contracts
13. Glossary of terms
14. CPSS, Progress in Reducing FXSR 303
15. CLS

Recommended Reading
Index

About Mervyn J. King

After graduating in Classics from the University of Cambridge in 1969, Mervyn King gained over twenty years' treasury experience in senior positions with top names in the City. Subsequently he became Chairman of the Executive Committee of FEL and following his mandate in 1995 to design their Pre-Diploma Examination (now ACI Dealing Certificate) he turned his focus to training. Since 1998 he has emerged as a trainer of international renown in treasury, risk and back office procedures, training staff from banks, IT software companies and supporters to the industry. He is also a past editor of Forex-Inter, the official ACI journal.

More about Mervyn J. King