Underpinning the development of the global financial services industry has been the deployment and integration of highly sophisticated systems and technology. The past decade has experienced unprecedented demands for capital with corresponding record trading volumes to hedge and manage risk in a wide range of capital investment opportunities.
While the global development of the industry has expanded economies and lifted profits for many financial institutions, it has also resulted in a global financial system whose major participants, markets, infrastructures and national economic institutions are interconnected. The high level of integration has decreased many forms of risk but it has also increased others, most notably operational risk.
While many operational risks can be controlled through...
