Operational Risks and Measurements

While understanding and capturing Financial, Credit and indeed Market risks for many financial institutions is regarded as somewhat ‘core business’, and financial ratio measurements can capture such risks with a good degree of precision, Operational Risks are sometimes seen as more nebulous. This viewpoint stems from the fact that capturing operational risks and measuring these with the same degree of precision, is commonly regarded as more difficult. Nevertheless Operational Risks have been seen through history as having a significant impact on financial institutions. Take for example the current issues of behaviours and culture within major financial planning …