
s t ructural change, and/or complex support systems.
Operational risk has a high potential impact in these areas.
Crucially, the risk is magnified if the businesses also have low
margins.
Globalization of markets
The advance of telecommunications has meant that transac-
tions can be originated anywhere in the world in a matter of
seconds. Money can be moved around the world in a much
shorter space of time than previously.
For banks, the ability to predict market movements and
protect against what they cannot predict has become essential.
Losses of $100m can now take place in seconds, wiping out a
month of profits. Risk exposure has increased because counter ...