The Basel II Accord was published in order to provide guidelines for how to institute controls and techniques for managing operational risk. This Accord is being adopted by financial institutions worldwide. The Accord sets out minimum capital requirements calculated for all types of risk faced by a bank, including operational, and outlines disclosure and transparency requirements so that the market may see the overall risk picture of the bank.
An underlying principle of managing operational risk is that once you identify a vulnerability in an organization, be it human or process, you should implement a control against that vulnerability. Human error is a major contributor to operational risk losses. The best control one can think of against this problem is to ensure that your staff is highly skilled.
Training is of course a huge component of creating a productive work force. When people know their jobs well but can also see the "big picture" of where their role fits into the entire organization, they are motivated to do well and make fewer errors. Fewer errors mean less wasted time and certainly, less wasted money spent correcting them.
Zoologic Learning Solutions can provide an effective training solution for your firm. We can provide effective and engaging training on a vast array of financial services topics, including managing operational risk and the Basel II Accord.