The last risk silo

Operational Risk

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A reminder to the insurance industry, if one were needed, of the dangers of ineffective operational risk management came in December last year, when Norwich Union Life suffered the highest ever fine handed out by the UK's Financial Services Authority (FSA) - £1.26 million - for not adequately protecting its customers from fraudsters. And then in January, the full scale of operational risk exposure in the financial sector became starkly clear when Societe Generale discovered a £3.7 billion black

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