All you need to know about op risk in four letters

Processes, people, systems and external events are fundamental to operational risk management, says Ariane Chapelle

Back to basics: firms would benefit from focusing on the four primary elements of op risk

Ariane Chapelle is honorary reader in operational risk at University College London and the director of Chapelle Consulting, a UK-based risk management advisory firm

Sometimes it's good to go back to basics. Every operational risk manager knows the Basel Committee on Banking Supervision's definition of op risk: "The risk of loss resulting from inadequate or failed internal processes, people and systems or from external events." That's PPSE for short.

After 15 years of frameworks, lines of

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