Operational risk is a category of risk that refers to risks arising from the day-to-day operations of firms.
It is somewhat of a catch-all phrase, often taken to mean all risks that are not related to market or
The category of operational risk is broad, covering everything from supply chain risk to people risk to
cyber risk. It is also a category of risk which has tended to be seen as a lesser risk than credit and
market risk, however, operational risk failures are often the root cause or a major contributory factor
in many credit risk or market risk losses.
The Basel II accord defines seven event type categories:
▪ Internal Fraud – misappropriation of assets, tax evasion, intentional mismarking of positions,
KRM22’s Global Risk Platform provides applications to help you address your firm’s regulatory, market, technology and operations risk challenges and to manage your entire enterprise risk profile. KRM22 is a public Group listed on AIM and headquartered in London.