A new focus on old risks

Operational risk can wreak havoc on financial institutions’ businesses, yet measurement of operational risk is not nearly as developed as that of credit or market risk. Legislation is forcing firms to face up to the problem and STP may help them on their way, according to STPforum

Regulatory awareness and change, the threat of terrorism and the continued move towards faster transaction processing have made operational risk something of a buzz word within today’s financial community. The measurement of credit, market and liquidity risk is a sophisticated yet well-known science covering systems that lend themselves well to being quantified, measured, monitored and analysed. Operational risk, however, arises from the interaction of social behaviour, technology and the

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