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Public Company Financial Glossary

What is it? A company that has shares that investors are able to acquire in the open market.

Finance Term Definition Added By: Patrick

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Financial Term operations risk is 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.

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