An operational risk is a risk arising from execution of a companys business functions. As such, it is a very broad concept including e.g fraud risks, legal risks, physical or environmental risks, etc. The term operational risk is most commonly found in risk management programs of financial institutions that must organize their risk management program according to Basel II. In Basel II, risk management is divided into credit, market and operational risk management. In many cases, credit and market risks are handled through a companys financial department, whereas operational risk management is perhaps coordinated centrally but most commonly implemented in different operational units e.g. the IT department takes care of information risks, the HR department takes care of personnel risks, etcMore specifically, Basel II defines operational risk 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, this particular way of framing risk management 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.Since the mids, the topics of market risk and credit risk have been the subject of much debate and research, with the result that financial institutions have made significant progress in the identification, measurement and management of both these forms of risk. :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: http://www.adbrite.com/mb/contact_us.php http://deve12.regeasy.hop.clickbank.net/ http://www.cuteonly.com/?a_aid=bcc2d3c1&a_bid=d75df85d http://www.bidvertiser.com/bdv/bidvertiser/bdv_registration.dbm?source=110971908 :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Telecom_Domain" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.co.in/group/telecom_domain?hl=en-GB -~----------~----~----~----~------~----~------~--~---
