Lessons From 15 Years of Operational Risk Reporting

The first Basel II proposals, published in 1999 globalised the term ‘operational risk’, a phrase that, while it has been debated at the occasional conference and had attracted surplus risk management attention (in the heady pre-crisis days when risk managers had time on their hands…), had neither a standard definition nor phrasing. The Basel Committee anchored the definition of operational (rather than operations or business) risk to the risk of loss (to shareholders) arising from an organisation’s people, processes or systems.