Operational risk is defined as the risk resulting from inadequate or failed internal processes or external events, which have, might or may have caused a loss, a profit or an opportunity cost (fraud, natural disasters, human error, computer failure, etc.).
- The management of operational risk comes within a framework determined by regulations (in particular by the Basel Committee, the Capital Requirements Directive (CRD) and the Committee on Banking and Financial Regulation CRBF 97-02 in France). For this matter, capital requirements are defined in terms of the solvency ratio
- The operational risk management framework is implemented throughout the BNP Paribas Group in proportion to the risks at stake
- The control of operational risk, through its knowledge and the implementation of appropriate mitigation framework, constitutes one of the key issues for the BNP Paribas Group. This issue involves all employees and is integrated into the various decision-making processes within the Group
The Specific Case of Business Continuity
Business continuity is defined as the set of measures enabling the company to ensure the continuity of its essential or important activities and services, at the point of crisis and if necessary on a scaled-down basis, followed by the planned resumption of full activities. This covers both the operational aspects and the IT aspects of the company’s activities.
The BNP Paribas Group has developed various continuity and prevention solutions with respect to a range of potential crisis scenarios (destruction of buildings, natural disasters, etc.) and in proportion to the risks involved. These solutions must be tested regularly and must cover situations of extreme shocks, in compliance with regulatory requirements.