Question
_________ is the risk of loss that arises due to
breakdown in the internal procedures, people and systems or from external eventsSolution
Operational Risk: Defined as per Basel committee as the risk of loss (direct loss) resulting from inadequate or failed internal processes, people and systems or from external events. The events under operational risk leading to losses could include: 1.   Internal fraud, 2.   External fraud, 3.   Employment practices and workplace safety, 4.   clients, products and business practices, 5.   Damage to physical assets, 6.   Business disruption and system failures, 7.   Execution, delivery and process management            Â
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