Op risk is increasing for weak banks, says regulators’ guidance

Operational risk will come into greater focus for banks worldwide and will become more important as a factor in weak banks, global banking regulators said in early April.

Op risk will increase as banks make use of more sophisticated systems, new delivery channels and outsourcing arrangements that increase a bank’s reliance and exposure to third parties, the Basel Committee on Banking Supervision said in guidance to supervisors on dealing with weak banks.

The committee, which largely comprises banking supervisors from the Group of 10 leading economies, in effect regulates international banking. But its guidance on dealing with weak banks is intended for banking