For identification and measurement of operational risk,

Solution

A definition for operational risk, including the loss event types that will be monitored. Promptly detecting and addressing these deficiencies can substantially reduce the potential frequency and/or severity of a loss event. There are 7 loss event type classification under operational risk in banks as follows:       i.        Internal Fraud      ii.        External fraud     iii.        Employment Practices and Workplace Safety    iv.        Clients, Products & Business Practices     v.        Damage to physical assets    vi.        Business disruption & system failures   vii.        Execution, Delivery & Process Management