Basel’s archaic op risk taxonomy gets a makeover
Industry moves to revise out-of-date categories that feature risks such as cheque fraud
In 2001, the Basel Committee set its classification scheme for operational risks. Among the threats it listed was cheque-kiting, a form of fraud that siphons money available between the time a cheque is deposited and when it clears.
But even by 2001, cheques had begun their slow move to the sidelines – online payments were only just starting to gather momentum.
Today, cheque-kiting is an
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