Operations Risk Financial Glossary
What is it? The risk to the bank that errors made in the course of conducting its business will result in losses. The Federal Reserve calls this operational risk and states in its definition that operational risk arises from the potential that inadequate information systems, operational problems, breaches in internal controls, fraud, or unforeseen catastrophes will result in unexpected losses. The Office of the Comptroller of the Currency calls this transaction risk and defines it as the risk to earnings or capital from problems with service or product delivery. Operations risk is covered under Basel II pillar I.Finance Term Definition Added By: Madison
The Operations Risk definition has been viewed 924 Time(s)!
Send To Friends!
If you'd like to send the Operations Risk definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -We hope you now understand the meaning of Operations Risk. If you need any more information on this term, please don't hesitate to contact us.
Other Similar Finance Terms:
Financial Term Tiered Interest Rate is An interest rate structure that allows for increased interest based on a higher tiered rate and increased account balance for that rate.Financial Term Gross Monthly Income is The amount of consistent and stable income that an individual receives each month, averaged over a period of time. This amount includes overtime pay, bonuses, commissions and income from dividends or interest, provided that the individual can show a consistent history of receiving such income.
Financial Term Equity is The market value of real property, less the amount of existing liens. Equity build-up is the reduction of principal on a mortgage or deed of trust by periodic payments, which increases (builds-up) the difference (equity) between the property value and amount of the lien.
Financial Term CAP is See Common Agricultural Policy
Financial Term days payables is The level of accounts payable expressed as its equivalent in days of a portion of cost of goods sold for the year. Calculated by multiplying accounts payable by 365 and then dividing that product by cost of goods sold.