Risk associated with the potential for systems failure in a given market.
The potential for loss attributable to procedural errors or failures in internal control.
Risk of direct or indirect loss from the failure of internal processes, personnel, systems, or external events. The loss could be catastrophic or occur incrementally over time. It includes fraud, theft and computer system failure.
The risk of loss resulting from a breakdown in, for example, communications, information or transactional processing or legal/compliance issues, due to technology/systems or procedural failures, human errors, disasters or criminal activity. The Bank's definition of operational risk consists of two main components, operations risk and business/event risks.
Measures the probability that investment losses will result from factors other than credit risk, market risk or liquidity risk, such as employee fraud or misconduct, errors in cashflow models, incorrect or incomplete documentation of trades or man-made disasters.
A range of different types of risks, arising from inadequacies, failures, or non-observance of internal controls and procedures, which threaten the integrity and operation of business systems.
The risk of direct or indirect loss resulting from inadequate or failed internal processes, people and systems or from external events.
The risk that deficiencies in information systems or internal controls will result in unexpected loss. The risk is associated with human error, system failures and inadequate procedures and controls.
Operational risk is the risk of financial loss arising from the transaction, settlement and resource management processes associated with debt management. This broad definition includes risks such as fraud risk, settlement risk, legal risk, accounting risk, personnel risk and reputational risk. Operational risk is contingent on both an operational failure occurring and there being a resultant financial loss.
The potential for loss resulting from inadequate or failed internal processes or systems, human error or external events not related to credit, market or liquidity risks.
the risk that a firmâ€(tm)s internal practices, policies and systems are not adequate to prevent a loss being incurred, either because of market conditions or operational difficulties. Such deficiencies may arise from failure to measure or report risk correctly, or from a lack of controls over trading staff. Although operational risk is harder to define precisely than market or credit risk, it is considered by many to have been a contributor to some of the highly publicised losses of recent years.
The risk of losses due to IT system failure, legal risk, human errors, fraud, etc.
Risk due to human error, systems failure or external events.
Operational Risks are threats to the successful execution of processes (e.g.) in a project, operational risks could be threats to the planning process, testing process etc.
Risk from mistakes or failures in operations or performance.
Operational risk arises from the potential for loss due to significant deficiencies in system reliability or integrity. Banks may be subject to external or internal attacks on their systems or products, as well as customer misuse and inadequately designed or implemented electronic banking and electronic money systems. Français: Risque opérationnel Español: Riesgo operacional
The risk of loss due to failings of systems, more information ...
The risk of direct and indirect damage resulting from mistakes made by employees or from failing or inadequate processes or systems.
According to §644 of International Convergence of Capital Measurement and Capital Standards, known as Basel II, operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events. Although the risks apply to any organisation in business it is of particular relevance to the banking regime where regulators are responsible for establishing safeguards to protect against systemic failure of the banking system and the economy. The Basel II definition includes legal risk, but excludes strategic risk: i.e. the risk of a loss arising from a poor strategic business decision.