Controlling operational risk: concepts and practices: a participant-observer research on the development of concepts and practices in controlling operational risk in a banking environment

The subject of this thesis is controlling operational risk in a banking environment. Operational risk is defined as ¿the risk of losses resulting from inadequate or failed internal processes, people, systems, or from external events¿. The definition already points out that this is a broad subject that affects the whole bank. We have chosen to focus on the place of operational risk within the risk management function of banks and on the development of measurement methods for determining the appropriate level of capital needed to cover potential losses resulting from this risk.