When we do the assignment, there is additional consideration which is Strategic Risk, I am wondering if this could be one single area of exposure or how could we using this to control the risk assessment?
There are some risk incidents that are associated with more than one Basel risk type. For example, one can identify money-laundry as a risk under external fraud since it is conducted by an outside party. However, one can also identify it as a risk under CPBP since the company fails to comply with the anti money laundry regulations. How can we identify its Basel type under this kind of circumstance?
I think the shifts in business model and strategy can also affect the ORP. If a financial institution alters its business strategy (e.g., entering new markets or offering new products), the risk profile will change accordingly. Expanding into higher-risk markets or launching complex products may introduce new operational risks.
Could be 1.Technical failures: In addition to system disruptions, these include failures to adopt new technologies or cybersecurity breaches. 2. Reputational risk: Negative public perceptions resulting from scandals, fraud or poor business practices that affect the bank's standing and trust with customers and investors. 3. Third-party dependence: Risks arising from over-reliance on third-party service providers for critical operations. 3. Unforeseen Market Risks: Sudden changes in market dynamics, interest rates or economic conditions that may affect the company's operational processes.
I think it also includes some errors caused by system failures within the bank, such as transferring a customer's transfer to another customer's account by mistake. It may also include risks such as robbery, such as someone robbing someone with a knife.
When we do the assignment, there is additional consideration which is Strategic Risk, I am wondering if this could be one single area of exposure or how could we using this to control the risk assessment?
There are some risk incidents that are associated with more than one Basel risk type. For example, one can identify money-laundry as a risk under external fraud since it is conducted by an outside party. However, one can also identify it as a risk under CPBP since the company fails to comply with the anti money laundry regulations. How can we identify its Basel type under this kind of circumstance?
I think the shifts in business model and strategy can also affect the ORP. If a financial institution alters its business strategy (e.g., entering new markets or offering new products), the risk profile will change accordingly. Expanding into higher-risk markets or launching complex products may introduce new operational risks.
Could be 1.Technical failures: In addition to system disruptions, these include failures to adopt new technologies or cybersecurity breaches. 2. Reputational risk: Negative public perceptions resulting from scandals, fraud or poor business practices that affect the bank's standing and trust with customers and investors. 3. Third-party dependence: Risks arising from over-reliance on third-party service providers for critical operations. 3. Unforeseen Market Risks: Sudden changes in market dynamics, interest rates or economic conditions that may affect the company's operational processes.
I think it also includes some errors caused by system failures within the bank, such as transferring a customer's transfer to another customer's account by mistake. It may also include risks such as robbery, such as someone robbing someone with a knife.