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Outline the Main Sources of Operational Risk and Why Operational

question 46

Essay

Outline the main sources of operational risk and why operational risk gained prominence during the GFC.


Definitions:

Goal-directed Behavior

Actions taken with the intention of achieving a specific outcome or objective.

Assimilation

In Piaget’s theory, the process by which new experiences are interpreted and integrated into preexisting schemas.

Preexisting Idea

An idea or belief that was formed before being exposed to new information or experiences.

New Experience

Encountering or undergoing something for the first time, which can lead to learning, adaptation, and growth.

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