Identifying and mitigating perceived risks in the bank service chain: A new formalization effort to address the intangible and heterogeneous natures of knowledge-based services

M Dubosson, E Fragniere

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

Due to the intangible and heterogeneous natures of services, classical control approaches might not provide the relevant safeguards to enable a typical bank to reach its objectives. Knowledge-based services result from diagnoses and evaluation performances whose value and quality levels are complex to measure as they are essentially based on perceptions and subjective opinions. Consequently, services cannot benefit from supply-chain risk approaches such as automation, statistical control process, and system reliability techniques in order to avoid any kind of disruption and quality lowering. To tackle these specific service-type risks, we suggest a new way of formalizing the risk management process adapted to the service chain of banks. To illustrate a default of risk management, we have opted for the bank industry and the Société Générale case. Based on secondary sources, we related the chain of events that led to the enormous loss of money for the Société Générale in 2008.
LanguageEnglish
Title of host publicationOperational Risk toward Basel III
Subtitle of host publicationBest Practices and Issues in Modeling, Management, and Regulation
EditorsGreg N Gregoriou
Place of PublicationHoboken, NJ, USA
PublisherJohn Wiley & Sons, Inc.
Pages97-114
Number of pages18
ISBN (Electronic)9781118267066
ISBN (Print)9780470390146
DOIs
StatusPublished - 29 Nov 2011

Fingerprint

Formalization
Knowledge-based
Intangibles
Perceived risk
Risk management
Statistical process control
Supply chain risk
Industry
System reliability
Safeguards
Automation
Management process
Disruption
Performance evaluation

Cite this

Dubosson, M., & Fragniere, E. (2011). Identifying and mitigating perceived risks in the bank service chain: A new formalization effort to address the intangible and heterogeneous natures of knowledge-based services . In G. N. Gregoriou (Ed.), Operational Risk toward Basel III: Best Practices and Issues in Modeling, Management, and Regulation (pp. 97-114). Hoboken, NJ, USA: John Wiley & Sons, Inc.. https://doi.org/10.1002/9781118267066.ch5

Identifying and mitigating perceived risks in the bank service chain : A new formalization effort to address the intangible and heterogeneous natures of knowledge-based services . / Dubosson, M; Fragniere, E.

Operational Risk toward Basel III: Best Practices and Issues in Modeling, Management, and Regulation. ed. / Greg N Gregoriou. Hoboken, NJ, USA : John Wiley & Sons, Inc., 2011. p. 97-114.

Research output: Chapter in Book/Report/Conference proceedingChapter

Dubosson, M & Fragniere, E 2011, Identifying and mitigating perceived risks in the bank service chain: A new formalization effort to address the intangible and heterogeneous natures of knowledge-based services . in GN Gregoriou (ed.), Operational Risk toward Basel III: Best Practices and Issues in Modeling, Management, and Regulation. John Wiley & Sons, Inc., Hoboken, NJ, USA, pp. 97-114. https://doi.org/10.1002/9781118267066.ch5
Dubosson M, Fragniere E. Identifying and mitigating perceived risks in the bank service chain: A new formalization effort to address the intangible and heterogeneous natures of knowledge-based services . In Gregoriou GN, editor, Operational Risk toward Basel III: Best Practices and Issues in Modeling, Management, and Regulation. Hoboken, NJ, USA: John Wiley & Sons, Inc. 2011. p. 97-114 https://doi.org/10.1002/9781118267066.ch5
Dubosson, M ; Fragniere, E. / Identifying and mitigating perceived risks in the bank service chain : A new formalization effort to address the intangible and heterogeneous natures of knowledge-based services . Operational Risk toward Basel III: Best Practices and Issues in Modeling, Management, and Regulation. editor / Greg N Gregoriou. Hoboken, NJ, USA : John Wiley & Sons, Inc., 2011. pp. 97-114
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