What are the four phases of operational risk assessment?
Operational Risk Management attempts to reduce risks through risk identification, risk assessment, measurement and mitigation, and monitoring and reporting while determining who manages operational risk. These stages are guided by four principles: Accept risk when benefits outweigh the cost.
What are the types of operational risk events?
Here are the seven categories of operational risk laid out in Basel II:
- Internal fraud.
- External fraud.
- Employment practices and workplace safety.
- Clients, products and business practice.
- Damage to physical assets.
- Business disruption and systems failures.
- Execution, delivery and process management.
What is not covered under operational risk?
Operational risk has been defined by the Basel Committee on Banking Supervision1 as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This definition includes legal risk, but excludes strategic and reputational risk.
What are the 7 Basel categories?
Theft and Fraud Fraud / credit fraud / worthless deposits Theft / extortion / embezzlement / robbery Misappropriation of assets Malicious destruction of assets Forgery Check kiting Smuggling Account take-over / impersonation / etc.
What is Basel II operational risk?
The Basel Committee defines operational risk in Basel II and Basel III as: The risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This definition includes legal risk, but excludes strategic and reputational risk.
Who is responsible for managing operational risk?
the board of directors
Fundamental principles of operational risk management In this regard, it is the responsibility of the board of directors to ensure that a strong operational risk management culture10 exists throughout the whole organisation.
What are the 8 risk categories?
Risks Associated With International Activities 3 The OCC has defined eight categories of risk for bank supervision purposes: credit, interest rate, liquidity, price, operational, compliance, strategic, and reputation. These categories are not mutually exclusive.
What is the difference between Basel I Basel II and Basel III?
The key difference between Basel 1 2 and 3 is that Basel 1 is established to specify a minimum ratio of capital to risk-weighted assets for the banks whereas Basel 2 is established to introduce supervisory responsibilities and to further strengthen the minimum capital requirement and Basel 3 to promote the need for …
Was ist das operationelle Risiko?
„Das operationelle Risiko bezeichnet das Risiko von Verlusten aufgrund von unzulänglichen oder fehlgeschlagenen internen Prozessen oder aus mitarbeiter- und systembedingten oder aber externen Vorfällen. Das operationelle Risiko umfasst auch Rechtsrisiken, jedoch nicht strategische Risiken und Reputationsrisiken.“
Was ist eine operationelle Versicherung?
Versicherungen sind ein wichtiges Instrument zum aktiven Management von operationellen Risiken durch den teilweisen oder vollständigen Ausgleich von Schäden. Dabei können folgende operationellen Risiken versichert werden: Professional Indemnity ( Berufshaftpflichtversicherung)
Welche operationellen Risiken können versichert werden?
Dabei können folgende operationellen Risiken versichert werden: 1 Betriebsunterbrechungsversicherung 2 Fidelity/Bankers Blanket Bond ( Betriebstreuhandversicherung) 3 Electronic Computer Crime 4 Professional Indemnity ( Berufshaftpflichtversicherung) 5 Employment Practices Liability 6 Unauthorized Trading
Was versteht man unter Risiko?
Begriff: Risiko, im Zusammenhang mit Personal, Kunden oder Dritten, EDV-Systemen, Projekten, internen Verfahren oder Prozessen unerwartete Verluste zu erleiden. Beispiele sind Unterbrechungen des Geschäftsbetriebs, unzureichend gemanagte oder definierte Geschäftsabläufe oder Versagen der Kontrollmechanismen.