From the course: Introduction to Risk Management

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Operational risk

Operational risk

From the course: Introduction to Risk Management

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Operational risk

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- Businesses today are large and often complex organizations. This is especially true of banks. While banks can range from relatively small regional banks, the reality is most of the banks that we read or hear about are large, universal, or investment banks. With operations in dozens of countries offering a range of products and services to a broad range of clients. These banks must have clearly defined processes and systems in place to avoid errors and improve efficiency. There is a high degree of dependency on technology to achieve this. People need the right training and skills in order to effectively fulfill their roles. The bank needs to adopt an appropriate attitude towards risk to encourage employees to behave ethically and lawfully. Not only do banks need to manage these internal issues successfully, they also need to manage external events which might disrupt their ability to operate on a day-to-day basis. These external events might come from natural sources. For example, a…

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