In financial institutions, one third of equity is exposed to mistakes caused by human error, unsuccessful or inadequate internal processes, and system-based losses. These risks are referred to as operational risks. The Basel II Capital Accord, for the first time in history, stresses that these risks should be measured for capital adequacy purposes. The aim is to increase operational risk management operations and operational risk cultures across the industry.
Services of PricewaterhouseCoopers’ Financial Rsik Management experts during operational risk projects include:
- Analysis of differences between Basel II applications and operational risk management facilities of banks and financial institutions
- Comparison studies in light of leading applications
- Design of a management culture to improve organisational risk management culture
- Development of bank-wide control and risk management measures
