Mastering Operational Risk

The risk of direct or indirect loss resulting from inadequate or failed internal processes, people and systems or from external events.

Inadequate procedures and controls for reporting, monitoring and decision-making; Inadequate procedures on processing information, such as errors in booking transactions and failure to scrutinize legal documentation; Organizational deficiencies; Risk surveillance and excess limits: management deficiencies in risk monitoring, such as not providing the right incentives to report risks, or not abiding by the procedures and policies in force; Errors in the recording process of transactions; The technical deficiencies of the information system or the risk measures.

Inadequate or failed internal processes, people and systems; External events.

<p>External events such as natural disasters, political unrest, or cyber attacks.</p> Signup and view all the answers

<p>Organizational deficiencies can include poor management practices, lack of training, or ineffective communication channels.</p> Signup and view all the answers