PINS S6.1 What is operational risk?

(1) Operational risk is the risk of financial loss resulting from:
(a) inadequate or failed internal processes, people and systems; or
(b) external events.
(2) Operational risk includes:
(a) business continuity risk;
(b) technology risk;
(c) outsourcing risk;
(d) fraud risk;
(e) legal risk;
(f) project management risk; and
(g) any other risks that the insurer, having regard to its strategic plan and business plan, and the nature, scale and complexity of the insurer's business and operating environment, determines should be included.
Inserted by QFCRA RM/2013-1 (as from 1st January 2015).