Operational Risk

Mondaq Business BriefingIndia Law Articles in English (2004)

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Operational Risk

By N Raja Venkateswar and Raghu Ganapathy

The Context

Barings, Daiwa, Natwest, Sumitomo - a common thread runs through the high profile catastrophic losses suffered by these companies - all the losses arose in the area of Operational Risks (OR). These events have forced the regulators and banks world over to refocus on OR.

As businesses become more and more competitive, as the pace of change inside and outside the organization continues to increase exponentially, as the market place becomes more and more complex due to technological advancement and innovations, the management of operational change and the risks has become a critical success factor. Business operations will need to be as efficient as possible to deliver seamless service to the...

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