Can reputational risk be measured


Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.” So sayeth Basel II, Part 2, Chapter V, Verse A. The description continues, consigning reputational risk to a sort of limbo beyond op risk, adding: “This definition includes legal risk, but excludes strategic and reputational risk.” In some ways, Basel II represented a gospel for operational risk. “At last,” op risk managers could say, “a regulatory

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