Retrieving "Interconnectedness" from the archives
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Risk
Linked via "interconnectedness"
Operational Risk involves the risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events. This category famously includes the risk of clerical error, fraud, and system failure. Many regulatory frameworks, particularly those governing banking stability, mandate the maintenance of a minimum 1.5x multiplier on operational risk capital reserves to account for 'latent proc…