Regulatory Alerts2008-11-03 | OpR Expert Group recommendation on the definition of operational risk (of 05.03.2008)OpR Expert Group Recommendation on the Definition of Operational Risk
The OpR Expert Group recommends a standardized definition of operational risk under Section 269 of the Solvency Ordinance to guide national implementation of Basel and Brussels rules. The definition encompasses losses from inadequate internal processes, personnel, systems, or external events, explicitly including legal risk while excluding strategic and reputational risks. It further clarifies that outsourcing-related losses qualify as operational risk only when they directly impact the institution, distinguishing past transactional legal risks from future regulatory-driven business changes.
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