For FRM (Part I & Part II) video lessons, study notes, question banks, mock exams, and formula sheets covering all chapters of the FRM syllabus, click on the following link: [ Ссылка ]
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After completing this reading, you should be able to:
- Describe the three “lines of defense” in the Basel model for operational risk governance.
- Summarize the fundamental principles of operational risk management as suggested by the Basel Committee.
- Explain guidelines for strong governance of operational risk and evaluate the role of the board of directors and senior management in implementing an effective operational risk framework.
- Describe tools and processes that can be used to identify and assess operational risk.
- Describe features of an effective control environment and identify specific controls that should be in place to address operational risk.
- Explain the Basel Committee’s suggestions for managing technology risk and outsourcing risk.
