Within the banking sector operational risk is often perceived to be a less <p> important risk than financial risks such as market or credit risk. Such a view <p> is typically reinforced by the observation that banks are in the business of <p> taking these financial risks and must lend large amounts of...</p></p></p>

Understanding first credit risk and the operational risk has taxed the banking industry. The author suggests that the evidence points to a lack of understanding within the banks and he argues that regulators should desist in trying to change the management practices of banks and instead...