Banks face risky business of Basle

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Operational risk is not new – it’s a concept that banks have been struggling with for years with varying degrees of success. But setting aside capital against the risk of loss from human error, systems failure, or fraud is new, and of growing concern to the industry. With the Basle Accord’s capital requirements coming into effect in January 2005, banks and other financial institutions are having to face operational risk issues with a new sense of urgency. In the following roundtable discussion, brought together a number of professionals with different operational risk challenges to discuss the questions they face and the business implications of the Basle Accord. IBM’s Keith Saxton moderated