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Operational Risk is the probability of loss
resulting from inadequate or failed internal processes, people and
systems, or from external events. The definition includes Legal Risk,
which is the risk of loss resulting from failure to comply with laws as
well as prudent ethical standards and contractual obligations. It also
includes the exposure to litigation from all aspects of an
institution’s activities.
The are six standard Operational Risk factors;
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Fraud, both internal and external.
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Employment practices and workplace safety.
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Clients, products, and business practices.
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Damage to physical assets.
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Business disruption and system failures.
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Execution, delivery, and process management.
Credience offers Training, Consulting and Software products that cover Operational Risk,
in particular the Credience Operational Risk Engine (C-ORE™).
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