Scope Exclusions
The Basel II definition of operational risk excludes, for example, strategic risk - the risk of a loss arising from a poor strategic business decision.
Other risk terms are seen as potential consequences of operational risk events. For example, reputational risk (damage to an organization through loss of its reputation or standing) can arise as a consequence (or impact) of operational failures - as well as from other events.
Read more about this topic: Operational Risk
Famous quotes containing the word scope:
“A country survives its legislation. That truth should not comfort the conservative nor depress the radical. For it means that public policy can enlarge its scope and increase its audacity, can try big experiments without trembling too much over the result. This nation could enter upon the most radical experiments and could afford to fail in them.”
—Walter Lippmann (1889–1974)