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:
“The scope of modern government in what it can and ought to accomplish for its people has been widened far beyond the principles laid down by the old “laissez faire” school of political rights, and the widening has met popular approval.”
—William Howard Taft (1857–1930)