Thinking more radically about operational risk management

Op risk managers need to learn core op risk concepts from other industries rather than looking to market and credit risk techniques as a guide

The concept of right-side fail in the manufacturing and service industries is one of the core aspects of operational risk management outside the financial services industry. Essentially it means that if a train's brakes fail, they fail on rather than off. The reason this approach towards managing operational risk is so mature in the manufacturing and services world is that any failure means loss of lives, not loss of money. But the financial crisis has shown that a banking crisis can easily