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By Christophe PESSAULT, Chief Executive Officer, Arkus FS
As with many risk related matters, operational risk is not a new notion nor a new practice. Identifying operational risks, their likelihood, their potential impact and assessing mitigation factors is a common practice across many industries particularly well illustrated in the energy or transportation sectors.
This practice is more recent in the financial sector. In that respect, banking and insurance sectors were pioneer, in particular following the Barings bankruptcy; investment management and fund industries followed.
Operational risk management processes are currently more prescriptive for banks and insurances as it relates to capital adequation whereas rules are seen to...
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