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:
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—Samuel Taylor Coleridge (1772–1834)
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“I’m beginning to think that the proper definition of “Man” is “an animal that writes letters.””
—Lewis Carroll [Charles Lutwidge Dodgson] (1832–1898)