Operational risk in ordinary sense is the risk of losses arising to us when we don’t perform our activities appropriately; rather conduct them in a bad or improper manner. Operational risk is not a recent phenomenon; it is being managed in the financial institutions since long by ensuring proper internal control and supervision, taking of safety measures and precautions, regular audits, and checks and balances, etc. Recently, in response to some disastrous operational loss events which shook the developed world and led to collapse of some financial giants, (Barings, LTCM and Daiwa) banking regulators have agreed to implement an explicit capital provision in the banks towards t Download
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