...tailspin. 26 PART I Motivation 1 .4.4 Operational Risk Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. Inadequate or failed processes can cause breakdowns in information, transactions processing, settlement...

...percent level of confidence.* The 2004 Accord defines Aoperational risks as the Arisk of loas resulting from inadequate or failed internal processes, people and systems or from external events. This definition includes legal risk, but excludes strategic and reputational risks (2004 Accoid, par....

...requirements calculations. Operational risk is defined as the risk of direct or indirect loss resulting from inadequate or failed internal processes, people and systems or from external events [7]. Operational risk exposure is used as part of the overall risk calculations in the financial business...

...There are also many other operational risks which, briefly defined, are the risks of loss resulting from inadequate or failed internal processes, people and systems, or from external events. Fraud, for instance, is an event with both internal and external origins. Until Basel II established...

...operational level are focused on day-to-day business and can be defined as the "risk of loss resulting from inadequate or failed internal processes, people and systems or from external events" (Basel 2005, 140). skills, experiences, expertise person documents, IT infrastructures, groups, teams,...

...market-related risks. For the first time the accord deals with operational risk: "The risk of loss, resulting from inadequate or failed internal processes, people and systems, or from external events." Capital must be held to cover these risks. Less capital is needed if the risks are well managed. The...

...II as a separate category of risk, is more difficult. OR is defined as "the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events" [9]. The definition of OR is very general and encompasses several possible events like for example...

...are expected to analyze the following risks: • Operational risk — includes risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events. 56. Id., pps. 45070-45087. 57. Id., p. 45952. 58. Ibid., p. 45978. • Operational risk loss — the...

...test Preprocessing Protected computer Protocol Regulation "O" Risk assessment Router Security event from inadequate or failed internal processes, people, and systems or from external events. The last stages of a system are compromised so that misleading printouts (transaction records, vouchers,...

...to vary significantly from bank to bank. Operational risk is defined as "the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This definition includes legal risk, but excludes strategic and reputational risk" (Basel Committee...