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Title[ Part 2: The First Pillar - Minimum Capital Requirements

Section[ V. Operational Risk

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A.         Definition of operational risk

644.     Operational risk is defined as the  risk of  loss  resulting from inadequate or failed internal processes, people and systems or from external events. This definition includes legal risk, ⁹⁷  but excludes strategic and reputational risk.

97   Legal risk includes, but is not limited to, exposure to fines, penalties, or punitive damages resulting from supervisory actions, as well as private settlements.

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