
Classification, identification and monitoring of operational risk 35
identification problem. This is as true of operational risk as it is true of credit risk and
market risk.
Figure 2.3 shows the parallel code system I have developed, and which has been
implemented by manufacturing companies and financial institutions. In one of its
implementations it has helped in reducing operational risk in the expediting of wares
to business partners. Improvements have been significant by an order of
magnitude.
2.5 The Chorafas parallel code system as an organizational
infrastructure
Let’s look first at classification since, as explained in the sections above, it ...