![]() ![]() ![]() The capture and use of internal and external operational risk loss data, including large potential events (the use of scenario analysis).A definition for operational risk, including the loss event types that will be monitored.The roles and responsibilities of the independent organization wide operational risk management function and line-of-business management.The policies and procedures should outline all aspects of the organization’s operational risk management framework, including: Operational risk management policies, processes, and procedures should be documented and communicated to appropriate staff. It should also have a scope defining what risks are included, as well as the roles, responsibilities, and accountability. The policies should include objectives, which should be integrated into the business strategy the desired standard for risk measurements established guidelines and standards for risk measurement guidelines for reduction of operational risks policies on off-hour trading, off-premises trading, etc and the risk appetite (reflecting the organization’s strategic positioning) on when to accept, avoid, or mitigate operational risks. An effective Risk Management oriented organization must set policies and procedures that clearly describe the major elements of its operational risk management framework, including identifying, measuring, monitoring, and controlling operational risk. ![]()
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