Phoenixman / Shutterstock.com
XL Catlin and Intelligent Insurer continue their series of articles looking at aspects of operational risk.
Operational risk is a risk category that regulators are concentrating on, specifically in the context of Basel II/III and Solvency II, and includes risks such as fraud, cyber, mis-selling, conduct risks and property damage.
“It can be thought of as the wrong people doing the wrong thing at the wrong time,” says Angelos Deftereos, senior underwriter, operational risks at XL Catlin.
In the same way that Basel II required the banking sector to come to grips with its catastrophe-level operational risks, Solvency II identifies operational risk as an important risk category that insurers have to address in terms of identification, quantification and then capital allocation and risk mitigation.
Business Finance, Disaster Accident, Risk, Health Medical Pharma, Systemic risk, Solvency II Directive, Own Risk and Solvency Assessment, Financial risk