Exceptional operational risks1: Three myths debunked

Are there common features among exceptional operational risks beyond their defining characteristics of rarity and severe consequences? Table 1 lists a dozen cases of banking, broking and asset management institutions that have been greatly affected by operational losses over the past 12 years. Ten of these went bankrupt, were taken over or were forced to merge as a consequence of their losses. It cannot be said that these are the most significant operational losses recorded over the period