Operational Risk

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Dictionary Says

Definition of 'Operational Risk'

A form of risk that summarizes the risks a company or firm undertakes when it attempts to operate within a given field or industry. Operational risk is the risk that is not inherent in financial, systematic or market-wide risk. It is the risk remaining after determining financing and systematic risk, and includes risks resulting from breakdowns in internal procedures, people and systems.
Investopedia Says

Investopedia explains 'Operational Risk'

Operational risk can be summarized as human risk; it is the risk of business operations failing due to human error. Operational risk will change from industry to industry, and is an important consideration to make when looking at potential investment decisions. Industries with lower human interaction are likely to have lower operational risk.
Search results for

'Operational Risk'

  • Operational Risk: A Must-Know For Investors

    http://www.investopedia.com/articles/professionaleducation/10/operational-risk.asp
    Operational Risk: A Must-Know For Investors. May 04 2010 | Filed Under ... So
    how do we define operational risk? On its face, it sounds ...

  • The Evolution Of Enterprise Risk Management

    http://www.investopedia.com/articles/fundamental-analysis/08/enterprise-risk-management.asp
    ... More recently, companies have managed risk through the capital markets with ... include
    crucial risks such as reputation, day-to-day operational procedure, supply ...

  • Using Economic Capital To Determine Risk

    http://www.investopedia.com/articles/economics/08/economic-capital.asp
    ... on the regulatory minimum amount of capital that banks should hold against their
    risks, such as credit risk, market risk, operational risk, counterparty risk ...

  • Basel II Accord To Guard Against Financial Shocks

    http://www.investopedia.com/articles/07/basel2.asp
    ... transparency. Basel II Charges for Three Risks The accord recognizes three big
    risk buckets: credit risk, market risk and operational risk. ...

  • Evaluating Hedge Fund Performance

    http://www.investopedia.com/articles/stocks/11/evaluating-hedge-fund-performance.asp
    ... 3. Operational Risk Lastly, operational risk refers to the shortcomings within the
    policies, procedures and activities of a hedge fund and its employees. ...

  • The Challenging Role Of The Corporate Treasurer

    http://www.investopedia.com/articles/financial-careers/08/corporate-treasurer.asp
    ... Operational Risk The financial risks discussed above are external risks.
    Operational risk is an internal treasury risk that reflects ...

  • How Basel 1 Affected Banks

    http://www.investopedia.com/articles/07/BaselCapitalAccord.asp
    ... These listed criticisms have led to the creation of a new Basel Capital Accord,
    known as Basel II, which added operational risk and also defined new ...

  • FRM Level 2 - Exam Prep | Investopedia

    http://www.investopedia.com/professionals/frm/default2.asp
    ... practical application of risk management tools covered in Part I to specific areas
    of risk management such as credit risk, market risk, and operational risk. ...

  • FRM Level 2 - Exam Prep | Investopedia

    http://www.investopedia.com/professionals/FRM/default2.asp
    ... practical application of risk management tools covered in Part I to specific areas
    of risk management such as credit risk, market risk, and operational risk. ...

  • Understanding Liquidity Risk

    http://www.investopedia.com/articles/trading/11/understanding-liquidity-risk.asp
    Understanding Liquidity Risk. ... Financial models routinely omitted liquidity risk.
    But the GCF has prompted a renewal to understand liquidity risk. ...

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