ABSTRACT
For efficient operational risk assessment, control, and management, it is vital to identify, measure, model, monitor, evaluate, and map the operational risk profile. More important is optimizing the implications of the operational risks for the operational business performances. This helps to
align the operational risks to the business/strategic objectives, planning process, decisions making, business practices, and quality initiatives. Moreover, reporting strategies and planning policies on when and how to accept, avoid,” or mitigate risks according to their actual pr obability, impact, and exposure in relation to the optimal levels of operational risks are the main emphasis for efficient and optimal operational risk management. Part III and Part IV of this book give overview guidelines on how to design an efficient framework for operational risk management systems in accordance with Basel II requirements. Whereas Part III concentrates notably on the operational risk assessment phase, Part IV focuses on the controlling and managing these operational risks.
