
18 Operational Risk Control
While these are credit risks to Equitable’s policyholders, for many of the latter the
ordeal started with an operational risk: creative marketing. Because it rests on false
premises, creative marketing is just as deadly as creative accounting, and it should be
sanctioned by top management. Six Sigma is a powerful tool in the control of this
operational risk. Chapter 8 explains why.
The examples I have just given underline some of the less known aspects of
operational risk. Solutions must be polyvalent: strengthening management, training
all personnel, studying emerging best practices, developing and using advanced
measurement ...