MANAGEMENT

Detailed explanation-1: -Credit and Operational Risk Data Exchange (CORDEx) is a data pool consortium of Indian Banks, setup with an initiation of Indian Banks’ Association’s (IBA). Union Bank of India is a member of the consortium and will be utilizing the external loss data inputs from CORDEx.

Detailed explanation-2: -There are five categories of operational risk: people risk, process risk, systems risk, external events risk, and legal and compliance risk.

Detailed explanation-3: -Operational risk losses from internal scams can stem from asset misappropriation, forgery, tax non-compliance, bribes, or theft. Fraud committed by external parties includes check fraud, theft, hacking, system breaches, money laundering, and data theft.

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.

Detailed explanation-5: -Examples of operational risk events that occur frequently are equipment failures, losses due to ineffective management processes, employee errors, internal and external fraud, IT system disruptions and natural disasters.