An Introduction to Operational Risk

In this article we give a brief introduction to the meaning of the term operational risk and what it means for the financial institutions of today. We explain the subject as it is defined in Basel II, and show the three different ways of calculating capital requirement for operational risk. In the next article, “Part II: Establishing a Framework for Operational Risk”, we will look at a first step in implementing a framework for operational risk management.

Part1 An Introduction To Operational Risk

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Part1 An Introduction To Operational Risk

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