While the recent incidents of catastrophic business failures and Basel II requirements of capital charge for operational risk have increased awareness about the latter, it has also sparked a debate on its measurement as well as its management. This is an analysis of the compelling reasons for an...

Oft-repeated catastrophic business failures and Basel II requirement of capital charges for operational risk (OR) have increased the awareness about OR. While the policy authorities are keen on banks adopting international best practices, yet measurement and quantification of OR has sparked a...