The Assessment of Operational Risk in the Austrian Large Value Payment System Artis

16 Pages Posted: 1 Mar 2006

See all articles by Stefan W. Schmitz

Stefan W. Schmitz

Oesterreichische Nationalbank (OeNB); Vienna Circle Society

Claus Puhr

Oesterreichische Nationalbank (OeNB)

Hannes Moshammer

Oesterreichische Nationalbank (OeNB)

Martin Hausmann

Oesterreichische Nationalbank (OeNB)

Date Written: February 2006

Abstract

The objective of this paper is to quantify the impact of an operational incident on the smooth functioning of ARTIS and on the operational reliability of the system by use of simulations. The analysis focuses on operational problems occurring in the realm of one of the participants. In this project we do not simulate an operational failure of the ARTIS platform itself. The scenarios are designed according to an ex-ante estimation of potential risk concentrations based on actual data for the sample period (Schmitz et al. 2006).

The main finding of the simulations was - given the existing business continuity arrangements would prove effective - the high operational reliability of ARTIS.

However, without the use of business continuity arrangements or in the case that they would not prove fully effective, the contagion effect on the smooth functioning of the payment system was substantial in all three scenarios. A non-negligible number of banks failed to settle payments.

Keywords: operational risk, payment systems, simulations,

JEL Classification: E10, G10

Suggested Citation

Schmitz, Stefan W. and Puhr, Claus and Moshammer, Hannes and Hausmann, Martin, The Assessment of Operational Risk in the Austrian Large Value Payment System Artis (February 2006). Available at SSRN: https://ssrn.com/abstract=886286 or http://dx.doi.org/10.2139/ssrn.886286

Stefan W. Schmitz (Contact Author)

Oesterreichische Nationalbank (OeNB) ( email )

Otto-Wagner Platz 3
POB 61
Vienna 1011
Austria

Vienna Circle Society ( email )

Spitalgasse 2-4, Court 1
Vienna, 1090
Austria

Claus Puhr

Oesterreichische Nationalbank (OeNB) ( email )

Otto-Wagner-Platz 3
1090 Vienna
Austria

Hannes Moshammer

Oesterreichische Nationalbank (OeNB) ( email )

Otto-Wagner-Platz 3
1090 Vienna
Austria

Martin Hausmann

Oesterreichische Nationalbank (OeNB) ( email )

Otto-Wagner-Platz 3
1090 Vienna
Austria

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
156
Abstract Views
1,903
rank
266,246
PlumX Metrics