BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They are defined in clear & specific sentence (not more than 10 words)
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Understandable for people with different background
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Verb Form
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Avoid specific technical terms/ jargon and avoid abbreviation
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Detailed explanation-1: -There are five categories of operational risk: people risk, process risk, systems risk, external events risk, and legal and compliance risk.
Detailed explanation-2: -Operational risk has been defined by the Basel Committee on Banking Supervision1 as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This definition includes legal risk, but excludes strategic and reputational risk.
Detailed explanation-3: -Operational risk is the risk of loss resulting from ineffective or failed internal processes, people, systems, or external events that can disrupt the flow of business operations. The losses can be directly or indirectly financial.
Detailed explanation-4: -Natural disasters, terrorism and vandalism. Business disruption and systems failures. Utility disruptions, software failures and hardware failures. Execution, delivery and process management.