The Bank for International Settlements (BIS) aims to promote global monetary and financial stability through international cooperation among central banks and financial supervisory authorities.
The Basel Accords are three versions, with numerous amendments, of international banking agreements developed by the Basel Committee. They seek to establish a stable international banking system by specifying capital requirements, internal measures of risk assessment, bank supervisory review standards, and market discipline through the disclosure of available capital, risk exposure, and assessments as a measure of the institution's capital adequacy.
Operational risk refers to the risk of direct or indirect loss resulting from inadequate or failed internal processes, systems, or from a wide variety of external events. It is a significant focus in financial regulation and has influenced several important guidelines such as the Basel Accords and the Turnbull Report.
