Do we need a broader definition of op risk?

BASLE II UPDATE

A definition of op risk should embrace the linkages with market and credit risk, argues Ken Swenson

Most definitions of operational risk fail to capture completely the complexity of a concept that covers fraud, computer system failure, settlement and documentation foul-ups and human error.

The definition put forward in Basle II, the new capital adequacy accord proposed for large international banks by the Basle Committee of banking supervisors from the Group of 10 leading economies, is: "Opera

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