Entire section Custom print Link Text Only Rich Text Print
  Versions

 

RM-3.1.2

Operational risk is the risk to the licensee of loss resulting from inadequate or failed internal processes, people and systems, or from external events. In identifying the types of operational risk losses that it may be exposed to, licensees should consider, for instance, the following:

(a) The nature of a licensee'scustomers, products and activities, including sources of business, distribution mechanisms, and the complexity and volumes of transactions;
(b) The design, implementation, and operation of the processes and systems used in the end-to-end operating cycle for a licensee's products and activities;
(c) The risk culture and human resource management practices at a licensee; and
(d) The business operating environment, including political, legal, socio-demographic, technological, and economic factors as well as the competitive environment and market structure.
July 2014