Objectives On completion of this tutorial, you will be able to:

• Define operational risk and recognize the many sources of operational risk for a typical banking institution
• Recognize the key regulatory/supervisory requirements in relation to operational risk
• Identify the components of a bank's operational risk management framework (ORMF)
• Recognize the necessary requirements for the effective management of operational risk

Tutorial Overview Operational risk is not new - it has existed ever since the first bank opened its doors for business. And while all types of organization are exposed to operational risk, the management of it is more challenging for the banking industry than for most other industries. This tutorial introduces the concept of operational risk, including the difficulties in defining it and distinguishing between the many categories and subcategories of operational risk. The tutorial also provides an overview of a bank's operational risk management framework (ORMF) and the key issues and considerations associated with managing operational risk. Prerequisite Knowledge Risk Management - Risk Types & Measurement Tutorial Level: Intermediate Tutorial Duration: 80 minutes