Operational risk a major concern in structured finance market, says S&P’s

The majority of securitization professionals cite operational risk as a leading concern in structured finance transactions, trailing only traditional credit risk as the overriding factor potentially affecting a deal’s health, according to the results of Standard & Poor’s Ratings Services’ recent Structured Finance Market Opinion study.

The survey shows that more than two-thirds of respondents chose operational risk as one of the top-three most important areas of risk in the market, surpassing other highly touted forms of exposure, such as legal (40%), modeling (39%), interest rate (27%), regulatory (24%), and correlation risk (9%) by a sizable margin.