The Operational Risk manages the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.
Guiding Principles of Risk Management
ADB has adopted the following principles to guide decision making throughout the organization:
- Conducts its business with integrity and observes high standards of market conduct,
- Conducts its business with due skill, care and diligence,
- Organizes and controls its affairs responsibly and effectively with sound risk management systems and procedures,
- Treats its clients fairly and communicates with them in a way which is clear, fair and not misleading,
- Manages conflict of interest fairly, between itself and its clients,
- Manages operational risk in a cost effective manner, subject to compliance with applicable legislation and regulatory requirements and operational risk exposures,
- Every member of staff plays an active role in the management of operational risk, and
- Deals with its regulators and other supervisory bodies in an open and co-operative way, making full and open disclosure of operational risk events where appropriate.