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:
“Each man must have his “I;” it is more necessary to him than bread; and if he does not find scope for it within the existing institutions he will be likely to make trouble.”
—Charles Horton Cooley (1864–1929)
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