Due to a number of recent business failures and the unpredictable events, Insurance companies are to improve theirapproaches to operational risk( Actuarial Approach). Operational
risk can be described as “the risk of direct or indirect loss
resulting from inadequate or failed internal processes, people and systems or external events
Categories of operational risk
critical elements / internal deficiency that help the event to take place. The detrimental event
in terms of greater frequency and/or severity.
Event (actual or potential):
single detrimental occurrence
that can resolve directly in one or more damaginghappening for the bank (later
) and at the same time provoke subsequent single correlated events.
is the single damaging happening coming from a detrimental occurrence (event). The effect marks every singleconsequence in a unique event time-space context; the effect amount is the incurred operational loss.