It is “the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events” (Basel Committee on Banking Supervision, 2004, p XXXXXXXXXXFor example, the...

It is “the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events” (Basel Committee on Banking Supervision, 2004, p. 149). For example, the investigation of the British Petroleum Deepwater Horizon oil spill in 2010, which killed 11 people and was the largest oil spill in U.S. history, showed that it was the result of systemic errors at the operational level.