Narrow definition

Narrow definition: some banks view the risk as residing in the departments
called ‘Operations’ and have defined it as those errors and omissions of controls,
systems and processes which may lead to potential losses. Other risks such as
reputation, legal, compliance human resources may either be managed by an ‘all
risks’ committee which considers the exposure of the bank to all risks or operational
risk is the responsibility of individual department managers. Some banks
therefore do not see the need for a separate operational risk function. 386