(This article is an extract from "Operational Risk, the Next Frontier",
published in 1999 by the RMA, BBA and ISDA, and based on a global survey conducted
by PricewaterhouseCoopers.)
Operational Risk is not new to financial institutions. In fact, it is the first risk that banks must manage, even before they make their first loan or execute their first trade. What is new is the idea that operational risk management is a discipline with its own management structure, tools, and processes, much like credit risk or market risk.
