Measuring and managing market, credit and Op risk [76]

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Bullet points include: Operational risk – generally no upside, so management generally involves cost-effective exploration of ways of reducing operational risks Efficient use of Risk Registers, Incident Reporting, Dashboards, Key Risk Indicators, Risk and Control Self Assessment etc., instil right culture, carry out audits etc. Insure and/or outsource (but remember these can also introduce risks) Market and credit risk – usually decompose into: Parts not deemed to provide upside (i.e. unrewarded risk) Hedge away (if practical and does not generate too many other risks) Parts which are deemed to provide upside (i.e. rewarded risk) Identify efficient trade-off and methods for implementing this trade-off

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