Operational risk management is important for smooth operation as well as viability of any bank. Effective operational risk management is critical to the well-being of a bank.
Risks are inherent in any kind of business including banking. Risks and uncertainties form an integral part of banking industry which by nature entails taking risks.
According to Basel Committee on Banking Supervision, operational risk results from inadequate or failed internal processes, people, systems, and external events.
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