Approach with caution

There is much discussion in the risk management industry about indicators of operational risk. Many practitioners now agree that these tools play a key role in a firm’s efforts to manage such risk. Most, however, would also concur that they present conceptual and practical challenges, and therefore need to be used with great care.What follows is an overview of operational risk indicators, including their advantages, potential misuses, challenges and roles within an overall firm-wide operational

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