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 ...

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 ...

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 ...

COVID-19 has brought sound operational risk practices into focus around the world of business. Operational risk is the risk of loss from failures in internal processes. As COVID-19 disrupted our ...

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 ...

Today, the landscape of operational risk is being reshaped by cyber threats, third-party dependencies, artificial intelligence adoption and regulatory scrutiny. With operational resilience under the ...

Integrated risk management (IRM) is becoming an increasingly popular term to showcase the importance of risk at the forefront of corporate governance, as well as inferring that, traditionally, these ...

Current stress testing frameworks for operational risk often lack clarity with respect to measurement standards and the balance to be struck between systemic (macroeconomic) and idiosyncratic risk ...

The operational risk component of the agencies' capital proposal could not possibly pass any cost-benefit analysis, write Grag Baer and Francisco Covas, of Bank Policy Institute. If the capital rule ...

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 ...