Measuring Operational Risk: How the Mistakes Add Up

Kentouris, Chris
December 2009
Securities Industry News;12/14/2009, Vol. 21 Issue 23, p1
Trade Publication
The author discusses ways of measuring operational risks of financial companies and securities brokers in the US. He cites that prevalence of security disputes within the securities brokerage business are often settled privately and very few reach the courts. He cites the mistakes commonly committed by financial institutions include failed settlement of trades and erroneous processing of corporate action notifications. He mentions that minimizing human intervention in the transactions will help reduce discrepancies in the records.


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