Operational risk has often been poorly understood or ignored at banks.
getty
The severe disruptive effects of Covid-19 on banks’ activities, have made identifying, measuring, controlling, and monitoring operational risk at banks more important than ever. Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This Basel Committee on Banking Supervision definition includes legal risk, but excludes strategic and reputational risk. The main objective of the Basel Committee for Banking Supervision’s recently released Principles for Operational Resilience is to make banks better able to withstand, adapt to and recover from severe adverse events.
Operational risk is the possible loss to earnings due to people, processes, IT and systems, and … [+]
Fitch Learning
Operational resilience, as defined by the Basel Committee for Banking Supervision (BCBS) is “the ability of a bank to deliver critical operations through disruption.” For the sake of the safety and soundness of the banking sector, we want…
