Operational risk can never be 100% eliminated, and management must decide what level of operational risk it is comfortable accepting. While businesses often seek to reduce risk through contracts or ...

From fires to employee errors, all businesses face risks. Starting a business without risk is impossible, so to run successful businesses, small-business owners must understand and prepare for the ...

Financial institutions are in the business of risk management and reallocation, and they have developed sophisticated risk management systems to carry out these tasks. The basic components of a risk ...

This research models operational risk data via the loss distribution approach under Basel II using open-source data consisting of 3192 operational loss events between 2009 and 2018. The approach is ...

This study uses three methods – operational lapses, the cost–income ratio and the basic indicator approach – to measure operational risk in the non-life-insurance sector. The system generalized method ...

Challenging times present an opportunity for organizations to perform detailed assessments of their operations. While recent stock market turmoil has many organizations worried about both short and ...

Recently, I spoke with several clients who had attended mortgage industry conferences. Each one of them pointed out the very same fact: Operational risk and regulatory compliance are the most ...

On August 20, 2015, the Office of the Superintendent of Financial Institutions (OSFI) released Draft Guideline E-21: Operational Risk Management (Draft Guideline) for comments. With the Draft ...

It’s no secret that healthcare systems exist at the intersection of financial risk and operational risk. Amid the market volatility of our current socioeconomic environment, the pressure is on ...

Lack of a cohesive view, or even a dataset to create it, means trouble brewing in one corner of an environment—an error-prone ...

Identifying and assessing operational risk lets you make changes in your company to secure operations and reduce risk of business failure. Operational risk is the total of risks you run when operating ...