Does anyone know about operational risk in a Bank? and how a Bank can manage it?

Question

Does anyone know about operational risk in a Bank? and how a Bank can manage it?

Answer 1

The operational risk of a bank is the risk one of it's clients would fail to make payments on time. A bank has other risks as well (most known is the risk of loosing money on the stock market).

Screening and guarantees (mortgages)  are the only way to manage it, however it's expected some loans would default and provisions are made automaticly.