22 lines
632 B
Markdown
22 lines
632 B
Markdown
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-02 -->
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# Bank Operational Risk
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## Definition
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The risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events. Managing operational risk is crucial for banking stability and efficiency.
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## Source Chapter
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Book II, Chapter 2
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## Context
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Smith analyses various operational risks in banking and their effects on stability, showing how effective risk management is essential for maintaining banking efficiency and stability.
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## Economic Domain
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Regulation
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---
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