Definition
The Basel Committee defines operational risk as:
"The risk of loss resulting from inadequate or failed internal processes, people and systems or from external events."
However, the Basel Committee recognizes that operational risk is a term that has a variety of meanings and therefore, for internal purposes, banks are permitted to adopt their own definitions of operational risk, provided that the minimum elements in the Committee's definition are included.
Read more about this topic: Operational Risk
Famous quotes containing the word definition:
“One definition of man is “an intelligence served by organs.””
—Ralph Waldo Emerson (1803–1882)
“No man, not even a doctor, ever gives any other definition of what a nurse should be than this—”devoted and obedient.” This definition would do just as well for a porter. It might even do for a horse. It would not do for a policeman.”
—Florence Nightingale (1820–1910)
“Although there is no universal agreement as to a definition of life, its biological manifestations are generally considered to be organization, metabolism, growth, irritability, adaptation, and reproduction.”
—The Columbia Encyclopedia, Fifth Edition, the first sentence of the article on “life” (based on wording in the First Edition, 1935)