Neelakantiah S, Consultant, TCS Financial Solutions

Operational risk is the risk of financial loss resulting from deficiencies in information systems or internal controls, failure to comply with applicable regulations, human errors, management failures, or disruptions from external events such as natural disasters. Custody is a volume-driven, transaction-processing business, and much of the risk associated with it is operational in nature. As global custodians operate in multiple regulatory environments, there is a need for an effective process to identify regulatory and market changes and ensure continued compliance.

Capital alone does not reduce the occurrence of operational failures. There are potentially “low frequency and high severity losses”, which are illustrated in the white paper.

Read the white paper.

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