Operational risk: From finance to operations management
2010 (English)In: Proceedings of the 21th Annual Production and Operations Management Society Conference, 2010Conference paper (Refereed)
This conceptual paper outlines the definition of operational risk and its relevance to the operations management community. It argues that in overcoming inconsistencies in the Basel II definition of operational risks ‘risks associated to failure of people, processes, systems and/ or external events, including legal but excluding strategic or reputational risks’, that Operational risk is rather ‘risk of process failure’, and places the challenge within the operations management conceptual paradigm. The ‘process perspective definition’ of Operational risk, and the core objective to seek efficiency and effectiveness in management of Operational risk, opens opportunities for association and research with a wider range of production, quality and performance management disciplines e.g. performance management systems, stakeholder and decision making theories. Further the revised definition has greater recognition and consistency with the concept of sustainability, and allows for attributing risk outcome into social, political and economic contexts.
Place, publisher, year, edition, pages
IdentifiersURN: urn:nbn:se:kth:diva-62600OAI: oai:DiVA.org:kth-62600DiVA: diva2:480695
21th Annual Production and Operations Management Society Conference. Vancouver, Canada. May 7 - May 10, 2010
QC 201201262012-01-192012-01-192012-01-26Bibliographically approved