Types of Operational Risk
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Get full access to all Data Science, Machine Learning, and AI courses built for finance professionals.
One-time payment - Lifetime access
Or create a free account to start
A step-by-step guide covering Python, SQL, analytics, and finance applications.
Or create a free account to access more
The financial institutions encounter a variety of operational risks on a daily basis. It’s important that businesses are able to identify these risks and the losses incurred from them. The Basel Committee on Banking Supervision (BCBS) collected operational risk loss data and classified the losses in terms of eight business lines and seven loss event categories. The 7 loss events are further categorized into 20 sub categories. The eight business lines and the seven types of risk are listed below:
