Operational Risks

Abstract

Whereas it is quite easy to see the consequences of financial and insurance risks, operational risks are more opaque and less easy to quantify. First it is necessary to define, what operational risks are. Normally operational risks are the ones which are not financial or insurance risks. In order to be more concrete, the following list represents some important operational risks:

Regulatory risk::

Change in laws. Failure to comply with regulatory requirements.

Financial crime::

Fraud, money laundry and others.

Tax::

Risk paying too high taxes, risk to fail to comply with tax laws and regulation.

Reputational::

Risk putting reputation and brand at danger.

IT and business protection::

Risk of IT failure, risk of data loss, missing IT security, viruses.

GI claims::

Bad claims settlement processes, leakage and claim fraud.