The Reserve Bank of Australia believes that operational risk could lead to severe financial distress for FIs. Outline what is meant by operational risk and how it can impact on a financial institution. In particular, illustrate your answer with recent cases of bank operational risk, for example: retail bank system failures, trading loss fraud and Ponzi scheme fraud

Answer rating: 100% (QA)

Operational risk refers to the potential for financial losses resulting from inadequate or failed internal processes people and systems or from extern... View the full answer