Operational Risk

2. Heard a Presentation from the Operational Risk Consortium John Simone (Operational Risk Consortium—ORIC)

  • The definition of operation risk management would include any issues regarding people or governance as it pertains to
    oversight, technology, infrastructure, business continuity management, outsourcing, mis-selling, data protection, or
    transaction processing and products.
  • He explained that this is a broad definition, which makes it difficult to quantify because of the vast amount of variables involved, and is people-driven with a large amount of technology included, which makes it difficult to measure.
  • Operational risk also includes legal risks.

2012-3, 10-596