Question

What are the sources of operational risk? How can a bank prepare for the expected (normal)...

What are the sources of operational risk?

How can a bank prepare for the expected (normal) and unexpected operation risk?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Sources of operational risk according to basel II norms are-.

A. Natural disaster

B. Terrorism

C. Vandalism

D. Business disruption

E. System failures

F. Data entry errors

G. Accounting errors

A Bank can protect itself from different kind of operational errors which are controllable in nature and within its control, are kind of system failures and data entry errors and errors which are related to internal business.

An efficient business must be knowing its operational efficiency and various kind of operational risk associated with it which are controllable in nature and it should be proactively managing those kind of risk in order to prevent and mitigate the loss from them.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Define political risk. Name two ways that companies can prepare or deal with political risk or...
Define political risk. Name two ways that companies can prepare or deal with political risk or volatility in a country. Identify 3 specific ways religion can impact financing operation
From an operation management perspective, how can operational metrics and analysis and best practices be implemented...
From an operation management perspective, how can operational metrics and analysis and best practices be implemented to contain costs?
(b) What are the three major sources of bank liquidity? What are the two major uses?...
(b) What are the three major sources of bank liquidity? What are the two major uses? (c) Discuss the risk-return trade-off in the context of liquidity risk.
what techniques can be used to cover operational efficiency of banks? ( it is not operations...
what techniques can be used to cover operational efficiency of banks? ( it is not operations management) ( it is bank management)
What are different sources of power? How can a professional manager effectively use various sources of...
What are different sources of power? How can a professional manager effectively use various sources of power to influence different people within and outside the organization?
An investor holds shares of Bank of Montreal. The Canadian stock market can be explained by...
An investor holds shares of Bank of Montreal. The Canadian stock market can be explained by three sources of systematic risk: short-term interest rates (I), the rate of inflation (P), and industrial production (Y). Short-term interest rates have an associated risk premium of 4%, inflation has an associated risk premium of 4% and industrial production has an associated risk premium of 1%. Each systematic factor has a mean value of zero, so that non-zero factor values represent unexpected surprises from...
The normal distribution is a family of distributions that is often used to model operational processes....
The normal distribution is a family of distributions that is often used to model operational processes. Based on your readings for this module, give one example, different from those supplied in the overview, of how the normal distribution can be used in an operations or production environment. This example may be from your own experience. Be sure to explain how the normal distribution is used in the example you provide.
It is known that the system operational temperature under the normal good condition follows the normal...
It is known that the system operational temperature under the normal good condition follows the normal distribution N(30, 4). The engineer wants to develop a monitoring system to monitor whether the mean of operational temperature is changed based on a sample average of 9 temperature measurements at every hour. (1) if alpha=5%, can you suggest the rejection thresholds? (i.e., when the sample average of 9 temperature measurements falls in your suggested rejection range, your decision is that the system is...
The normal distribution is a family of distributions that is often used to model operational processes....
The normal distribution is a family of distributions that is often used to model operational processes. Based on your readings for this module, give one example, different from those supplied in the overview, of how the normal distribution can be used in an operations or production environment. This example may be from your own experience. Be sure to explain how the normal distribution is used in the example you provide. ** Please show graph of the example**
Stock ABC has an expected return of 6.47%, based upon a beta of 1.15. The risk-free...
Stock ABC has an expected return of 6.47%, based upon a beta of 1.15. The risk-free rate is 2.58%. If the actual return on Stock ABC turns out to be 8.55% and the actual return on the market turns out to be 7.58%, what portion of the unexpected return can be attributed to unsystematic risk?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT