But Basel II, by designing a risk-based system for credit and operational risk, separates the two risks and would require capital to be held for each separately. Operational disruptions have caused banks to suffer huge losses and, in some cases, failure here and abroad. At times they have dominated the business news and even the front pages.
BIS central bankers’ speeches  3  •  All banks, regardless of size, reported that accurate data is essential for more timely identification of emerging problems and for reducing regulatory and legal risks.