Description

Operational risk can manifest itself as a financial loss, or as damage to the Bank’s reputation, and arises from inadequate or failed processes, from external events (e.g., cyber-attacks) or from human factors. Explore the various sources of operational risk financial institutions today are exposed to and review a number of historic operational risk incidents to understand why these failings occurred.

Learning Objectives

---

1. Recall what operational risk is and its sources.
2. Identify the methods used to manage and mitigate operational risk.
3. Recall the risk control self-assessment process.
4. Identify the Basel II and III capital requirements.
5. Recall the principles for sound operational risk management.