Scaling op risk management for SMIs: how to avoid boundary disputes
In the fourth of the series, Eric Holmquist looks at managing the crossover between op risk and other risk types to ensure no potential risk events fall between the cracks
Consider this scenario. A commercial loan customer encounters financial challenges due to local economic changes that significantly hurt his business and is unable to make the minimum monthly payments on his outstanding balance. Due to a system error or staff oversight, the delinquency is not discovered until the loan is past the point where it should have charged off, creating at least one credit policy violation as well as a likely loss event. The loan has not, to this point, been subject to
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