Misconceptions about operational risk

Imad A. Moosa

Journal of Operational Risk

Abstract: ABSTRACT Contrary to widely held views, it is argued that operational risk is not onesided, it is not idiosyncratic, it is not indistinguishable from other risks, and it is not transferable via insurance. These views are reflected in several definitions of operational risk and crop up in discussions pertaining to its characteristics and management.

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