Operational risk

There are several definitions of Operational Risk which follow a similar theme. For example "Operational Risk is the risk that deficiencies in information systems or internal controls will result in unexpected loss. The risk is associated with human error, systems failure and inadequate procedures or controls" (Basel, 2000) "Operational Risk is the risk of direct or indirect losses resulting from inadequate or failed processes, people, and system or from external events" (Basel, 2001) A well-known example of failures in Operational Risk occurred in 2012 when Ulster Bank’s IT systems failed which caused severe delays in the lodging of its customer’s salary payments. The resulting fallout led to delays in these customers being able to pay bills…

More often than not, this billet captures E7’s BMC’s who are lacking experienced in the ways of command. The majority of these members are also not seeking command roles. They might be on the sidelines for personal, professional, medical, or family reasons. Occasionally they are members who have a strong desire to remain in an administrative role and not operational. They have very little understanding of the challenges that face small boat units i.e. administrative, financial, and operational.…

evaluate the choices of whether not to enter an international market. Strength − The efficiencies from the merger would potentially lead to lower domestic prices. − BRF dominates the market share in Brazil (60%-80%) over several processed food categories with its operational excellence (98% population reached by distribution, Information System Development), brand/marketing management (BOVESPA has rose 9.8% due to the strength of the two brands even after CADE’s ordeal). While they currently…

is doing their utmost to outdo their rivals. Clearly each organisation wishes to move ahead as quickly as possible, and that involves taking risks as the business exposes itself to a range of uncertainties that could affect whether or not it achieves its desired aim (Hillson, 2009). Due to motor vehicle companies thirst for wealth maximisation and the fact that they are constantly competing with others, one small hesitation in production can leave them trailing in the dust. With this mind set…

completed course of action (COA) development for the Defense of Tunisia contingency plan (CONPLAN). As the JPG prepared the COAs, the commander’s initial intent served to anchor the different concepts towards achieving the same purpose. I support the JPG’s initial commander’s intent, as it provides a solid basis to continue planning. This paper continues by explaining how the JPG developed the initial commander’s intent, and then provides the rationale for supporting the key elements within the…

The key enhancements include increasing the focus on risk culture and ensuring consistency with regulatory guidelines, which is fundamental to the organization core values and operating procedures, requirements are to focus on risk in all activities and encouraging the necessary mindset and behavior to be able effective risk management and promoting sound risk taking within the limits already set. Bank of America Risk Framework is the heart of comprehensive risk management, it clearly detail…

Risk Management: BP’s Failure Most risks in organizations lead to financial loss or gains depending on how well organizations identify risks and reduce as many risks as possible. Not managing possible risks within an organization effectively can result in consequences or possibly worse. Therefore, managing risks within an organization should be vital for the organizations to be successful and should not be overlooked. Operational risk arises from three key areas of an organization: people,…

Once Nationwide has identified major risk and degree of exposure to this risk, various strategies are employed to deal with these risks. One of these strategies is comparative advantage in risk bearing. This is a strategy that suggests that a company should make decision on which risk to take and which risk to avoid, based on the comparative advantages of the organization. The organization must also assess the tradeoff between risks and returns. The amount of returns associated with a certain…

Interested in it I choose the key term business risk because I am interested in the causes of business failures and possible ways to prevent it. Business risk influences are the negative impacts of sales, costs, competition, or economic conditions. Supply and demand factors could also result in the failure of a business. The three types of business risk are ownership risk, operation risk, and transfer risk (Satterlee, 2014). In an effort to protect and prevent business failure, business…

By: Lauren A., Jessica P., and Tori L. The following research paper involves what our group has learned about the competition, profit, risk, and evolution of two companies. The companies we researched are Sysco and U.S Foods. Both companies are in the food industry and they are each other’s biggest competitors. We have worked over the past week to gather as much information as possible involving these two companies. Competition U.S Foods is a very similar business to Sysco, both being food…